-In Exhibit P-7, if there are 8,000 workers living in the community where the Golden Goat Game Company is located, what is the unemployment rate (number of workers unemployed divided by the total number of workers in the community) at a wage of $30 per hour?

Question

Quizplus · Accepted Answer

At a wage of $30 per hour, the Golden Goat Game Company would employ 6,000 workers (as inferred from the context, assuming Exhibit P-7 shows a demand curve for labor that intersects the supply curve at this employment level at a wage of $30). Given there are 8,000 workers living in the community, the number of unemployed workers would be 8,000 - 6,000 = 2,000. The unemployment rate is calculated as (number of unemployed workers / total number of workers) * 100 = (2,000 / 8,000) * 100 = 25 percent.

-In Exhibit P-7, If There Are 8,000 Workers Living in the Community