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) 5/70 × 100.
B) 15/80 × 100.
C) 10/80 × 100.
D) 10/100 × 100.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed persons divided by the labor force, multiplied by 100. In this case, the number of unemployed persons is 10 (80 in the labor force minus 70 employed), and the labor force is 80. Thus, the unemployment rate is (10/80) × 100.

Based on the Following Data for the Country of Tiny