Suppose that in the small country of Sociopolis there are 6 million people in the adult population,that the labor-force participation rate is 70 percent,and that there are 3.8 million people employed.To the nearest tenth,what is the unemployment rate?
A)10.5%
B)9.5%
C)6.7%
D)None of the above is correct.

Question

Quizplus · Accepted Answer

The number of people in the labor force can be found by multiplying the adult population by the labor-force participation rate:

6 million x 0.70 = 4.2 million

The number of people unemployed can be found by subtracting the number of employed people from the labor force:

4.2 million - 3.8 million = 0.4 million

The unemployment rate can then be found by dividing the number of unemployed by the labor force and multiplying by 100%:

0.4 million / 4.2 million x 100% = 9.5%

Therefore, the answer is choice B, which is the closest to 9.5%.

Suppose That in the Small Country of Sociopolis There Are