Assume 140 million people are in the work force but 12% of them are unemployed.If the average duration of unemployment is ten months and the average monthly paycheck is $3,200, what is the approximate cost of the unemployment in terms of lost wages?
A)$64 trillion
B)$8.4 trillion
C)$684 billion
D)$540 billion
E)$38 billion

Question

Quizplus · Accepted Answer

Number of unemployed people = 0.12 x 140 million = 16.8 million
Total cost of unemployment = 16.8 million x $3,200 x 10 = $537.6 billion
The closest option in terms of cost is option D, which is $540 billion.

Assume 140 Million People Are in the Work Force but 12