Suppose there are currently 100 people unemployed, 1500 people employed, 1600 people in the labor force, and 2000 people in the working age population. The unemployment rate equals 100 times
A) 100/2000.
B) 100/1500.
C) 100/1600.
D) 1500/2000.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the total number of individuals in the labor force, and multiplying by 100. In this case, the number of unemployed individuals is 100, and the number in the labor force is 1600. Therefore, the unemployment rate is (100/1600) x 100 = 6.25%. Choice C is the only option that corresponds to this calculation.

Suppose There Are Currently 100 People Unemployed, 1500 People Employed