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
A) 100/1500.
B) 1600/2000.
C) 100/1600.
D) 1500/2000.

Question

Quizplus · Accepted Answer

The labor force participation rate equals the number of people in the labor force (employed + unemployed) divided by the working age population. Therefore, the labor force participation rate is (1500 + 100) / 2000 = 1600 / 2000 = 0.8 or 80%. Therefore, the correct choice is B (1600/2000).

Suppose There Are Currently 100 People Unemployed, 1500 People Employed