The population of a small town is 5,000. There are 4,000 people in the labor force, and 3,000 people are employed. The unemployment rate equals

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force and multiplying by 100.

In this case, the number of unemployed individuals is calculated by subtracting the number of employed individuals from the labor force:

4,000 (labor force) - 3,000 (employed) = 1,000 (unemployed)

Thus, the unemployment rate is:

1,000 (unemployed) / 4,000 (labor force) x 100 = 25 percent.

The Population of a Small Town Is 5,000