Suppose there are currently 100 people unemployed, 1500 people employed, and 2000 people in the working age population. The labor force participation rate equals 100 times

Question

Quizplus · Accepted Answer

The labor force participation rate is the percentage of the working age population that is either employed or actively seeking employment. Therefore, the labor force participation rate equals the number of employed plus the number of unemployed divided by the working age population: (1500 + 100) / 2000 = 1600/2000 = 0.8 or 80%. Multiplying this by 100 gives 80, which is choice B.

Suppose There Are Currently 100 People Unemployed, 1500 People Employed