A survey reveals that, on a small island, 100 people have jobs, 25 people are not working but are looking for jobs, and 45 people are neither working nor looking for work. The unemployment rate on the island is:
A) 12.5%.
B) 20%.
C) 25%.
D) 50%.

Question

Quizplus · Accepted Answer

The total number of people who are either employed or unemployed and looking for work is 100 + 25 = 125. The unemployment rate is the number of unemployed individuals divided by the total labor force, which is 25 / 125 = 0.2 or 20%. Therefore, the correct answer is B) 20%.

A Survey Reveals That, on a Small Island, 100 People