Suppose a country has 10 million people.Three-fourths of those individuals are in the labor force,with 500,000 unemployed.Full employment occurs at 5 percent.Based on this information,what is the unemployment rate?

Question

Quizplus · Accepted Answer

The labor force consists of those in the country who are working or actively looking for work. With 10 million people in the country and three-fourths in the labor force, the labor force size is 7.5 million (10 million * 0.75). With 500,000 unemployed, the unemployment rate is calculated as (500,000 / 7,500,000) * 100 = 6.67 percent.

Suppose a Country Has 10 Million People