If an economy has a labor force of 1,000 workers out of which 900 are employed, then the unemployment rate of the economy is _____ percent.
A) 90
B) 50
C) 20
D) 10

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force, then multiplied by 100. In this case, there are 100 unemployed workers (1,000 - 900) out of a labor force of 1,000, so the unemployment rate is (100 / 1,000) * 100 = 10%.

If an Economy Has a Labor Force of 1,000 Workers