An economy has 100,000 residents. There are 46,000 people with full-time jobs, 14,000 with part-time jobs, and 4,000 unemployed people who are actively looking for work. The unemployment rate for this economy is 6%.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force (employed + unemployed). Here, the labor force is 64,000 (46,000 full-time + 14,000 part-time + 4,000 unemployed), and the unemployment rate is 4,000/64,000 = 6.25%, which rounds to 6%.

An Economy Has 100,000 Residents