Based on the following data for the country of Tiny Town, the unemployment rate equals: Population = 100
Labor force = 80
Number of employed persons = 70 Number of discouraged workers = 5
A) 15/80 × 100.
B) 10/80 × 100.
C) 10/100 × 100.
D) 5/70 × 100.

Question

Quizplus · Accepted Answer

To find unemployment rate, we need to divide the number of unemployed individuals by the total labor force. 
Since there are 70 employed person, we can find the number of unemployed individuals by subtracting the number of employed persons and the number of discouraged workers from the labor force: 
80 - (70 + 5) = 5. 
Thus, the unemployment rate can be calculated as:
5/80 x 100 = 6.25%
However, none of the answer choices match this calculation exactly. The closest answer choice is B, which equals 10/80 x 100 = 12.5%. While this is not the exact unemployment rate, it is the closest approximation among the answer choices given.

Based on the Following Data for the Country of Tiny