The town of Marble Falls has 10 workers, of which 8 were employed and 2 were actively seeking work. After many months of seeking work, one of the unemployed workers became discouraged and stopped looking for work six weeks ago. The unemployment rate in Marble Falls is now

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The unemployment rate is calculated as the percentage of the labor force that is not employed but actively seeking employment. Initially, Marble Falls had 2 unemployed workers actively seeking work out of a labor force of 10 (8 employed + 2 unemployed seeking work), resulting in a 20% unemployment rate. However, when one unemployed worker stops looking for work, they are no longer considered part of the labor force, reducing the labor force to 9 (8 employed + 1 unemployed seeking work). The unemployment rate then becomes 1 out of 9, or approximately 11.1%.

The Town of Marble Falls Has 10 Workers, of Which