Suppose the working age population in Tiny Town is 100 people. If 25 of these people are NOT in the labor force, the_________ equals________ .
A) unemployment rate; 25/75 × 100
B) labor force; 25/100 × 100
C) unemployment rate; 25/100 × 100
D) labor force; 75

Question

Quizplus · Accepted Answer

The labor force includes all individuals who are either employed or actively seeking employment, which means it excludes individuals who are not in the labor force. In this case, the number of individuals not in the labor force is 25, so the labor force would be 100 (working age population) minus 25 (not in labor force), which is 75. None of the other answer choices provide the correct calculation for the labor force.

Suppose the Working Age Population in Tiny Town Is 100