Table 13-1
$\begin{array}{|l|c|}
\hline \text { Total population } & 20,000 \
\hline \text { Working-age population } & 15,000 \
\hline \text { Employment } & 1,000 \
\hline \text { Unemployment } & 100\
\hline
\end{array}$ Consider the data above for a simple economy.
-Refer to Table 13-1.The labor force participation rate for this simple economy equals
A) (1,000/1,100) × 100.
B) (1,000/15,000) × 100.
C) (1,100/15,000) × 100.
D) (1,100/20,000) × 100.

Question

Table 13-1
 $\begin{array}{|l|c|}
\hline \text { Total population } & 20,000 \
\hline \text { Working-age population } & 15,000 \
\hline \text { Employment } & 1,000 \
\hline \text { Unemployment } & 100\
\hline
\end{array}$ Consider the data above for a simple economy.
-Refer to Table 13-1.The labor force participation rate for this simple economy equals
A) (1,000/1,100) × 100.
B) (1,000/15,000) × 100.
C) (1,100/15,000) × 100.
D) (1,100/20,000) × 100.

Quizplus · Accepted Answer

The labor force participation rate equals the labor force divided by the working-age population. In this case, the labor force is the sum of employment and unemployment, which is 1,100. Therefore, the labor force participation rate is (1,100/15,000) × 100 = 7.33%. Therefore, the correct answer is C. None of the other answer choices calculate the labor force participation rate correctly.

Table 13-1 Consider the Data Above for a Simple Economy