$$\begin{array} { | l | r | }
\hline \text { Full-time Employed } & 80 \
\hline \text { Part-time Employed } & 25 \
\hline \text { Unemployed } & 15 \
\hline \text { Discouraged Workers } & 5 \
\hline \text { Members of Underground Economy } & 6 \
\hline \text { Consumer Price Index } & 110 \
\hline
\end{array}$$ Refer to the given information about a hypothetical economy. The unemployment rate is
A) 18.8 percent.
B) 12.5 percent.
C) 16.7 percent.
D) 25 percent.

Question

$$\begin{array} { | l | r | } 
\hline \text { Full-time Employed } & 80 \
\hline \text { Part-time Employed } & 25 \
\hline \text { Unemployed } & 15 \
\hline \text { Discouraged Workers } & 5 \
\hline \text { Members of Underground Economy } & 6 \
\hline \text { Consumer Price Index } & 110 \
\hline
\end{array}$$ Refer to the given information about a hypothetical economy. The unemployment rate is
A) 18.8 percent.
B) 12.5 percent.
C) 16.7 percent.
D) 25 percent.

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force, then multiplied by 100 to get a percentage. The labor force includes those who are full-time employed, part-time employed, and unemployed, but does not include discouraged workers or members of the underground economy. Therefore, the labor force is 80 (full-time) + 25 (part-time) + 15 (unemployed) = 120. The number of unemployed individuals is 15. Thus, the unemployment rate is (15 / 120) * 100 = 12.5 percent.

Refer to the Given Information About a Hypothetical Economy