Assume 160 million people are in the work force but 10% of them are unemployed.If the average duration of unemployment is eight months and the average monthly paycheck is $3,000, what is the approximate cost of the unemployment in terms of lost wages?
A)$3.2 trillion
B)$384 billion
C)$224 billion
D)$32 billion
E)$24 billion

Question

Quizplus · Accepted Answer

The number of unemployed people is 10% of 160 million, which is 16 million. If each unemployed person could have earned $3,000 per month, then over eight months, the total lost wages would be 16 million people * $3,000/month * 8 months = $384 billion.

Assume 160 Million People Are in the Work Force but 10