Suppose there are currently 100 people unemployed, 1,500 people employed, 1,600 people in the labor force, and 2,000 people in the working age population. The unemployment rate equals 100 times
A) 100/1,500.
B) 100/1,600.
C) 100/2,000.
D) 1,500/2,000.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed people divided by the labor force, then multiplied by 100 to convert it to a percentage. Here, it's (100 unemployed / 1,600 labor force) * 100 = 100/1,600.

Suppose There Are Currently 100 People Unemployed, 1,500 People Employed