Suppose some country had an adult population of about 46 million, a labor-force participation rate of 75 percent, and an unemployment rate of 8 percent. How many people were unemployed?

Question

Quizplus · Accepted Answer

Step 1: Calculate the size of the labor force

Labor force = (Adult population) x (Labor force participation rate) 
Labor force = 46 million x 0.75 
Labor force = 34.5 million

Step 2: Calculate the number of people employed

Number employed = (Labor force) x (1 - unemployment rate) 
Number employed = 34.5 million x (1 - 0.08) 
Number employed = 31.74 million

Step 3: Calculate the number of people unemployed

Number unemployed = (Labor force) x (unemployment rate) 
Number unemployed = 34.5 million x 0.08 
Number unemployed = 2.76 million

Therefore, the answer is B) 2.76 million.

Suppose Some Country Had an Adult Population of About 46