Table 6.4: Population and Employment in Nationland $\begin{array}{|l|r|r|r|}
\hline&1999&2000&2001\
\hline \text { Working Age Population } & 100 & 110 & 125 \
\hline\text { Employed } & 65 & 70 & 80 \
\hline\text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$

*all numbers are in millions
If discouraged workers were included in the labor force,what would the unemployment rate be for 2000?
A)18.6 percent.
B)3.8 percent.
C)4.3 percent.
D)15.7 percent.

Question

Table 6.4: Population and Employment in Nationland $\begin{array}{|l|r|r|r|}
\hline&1999&2000&2001\
\hline \text { Working Age Population } & 100 & 110 & 125 \
\hline\text { Employed } & 65 & 70 & 80 \
\hline\text { Unemployed } & 5 & 10 & 20 \
\hline \text { Discouraged Workers } & 2 & 3 & 5 \
\hline
\end{array}$

*all numbers are in millions
If discouraged workers were included in the labor force,what would the unemployment rate be for 2000?
A)18.6 percent.
B)3.8 percent.
C)4.3 percent.
D)15.7 percent.

Quizplus · Accepted Answer

The labor force includes those employed and those actively looking for work (unemployed). In 2000, the employed number is 70 million, and the unemployed number is 10 million. If discouraged workers (3 million) are included in the labor force, the new labor force size is 70 (employed) + 10 (unemployed) + 3 (discouraged workers) = 83 million. The unemployment rate would then be calculated as (unemployed + discouraged workers) / labor force = (10 + 3) / 83 = 13 / 83 = 0.1566, or 15.7 percent when rounded.

Table 64: Population and Employment in Nationland *All Numbers Are in Millions If Discouraged Workers Were Included

Table 64: Population and Employment in Nationland *All Numbers Are in Millions
If Discouraged Workers Were Included