Table 5.1 Consider the data above for a simple economy.
-Refer to Table 5.1.The labour force participation rate for this simple economy equals
A)(1,000/1,100)× 100 percent.
B)(1,000/15,000)× 100 percent.
C)(1,100/15,000)× 100 percent.
D)(1,100/20,000)× 100 percent.
E)(15,000/20,000)× 100 percent.

Question

Table 5.1  Consider the data above for a simple economy.
-Refer to Table 5.1.The labour force participation rate for this simple economy equals
A)(1,000/1,100)× 100 percent. 
B)(1,000/15,000)× 100 percent. 
C)(1,100/15,000)× 100 percent. 
D)(1,100/20,000)× 100 percent. 
E)(15,000/20,000)× 100 percent.

Quizplus · Accepted Answer

The labour force participation rate is the percentage of the working-age population that is part of the labour force. In this case, the labour force is made up of those who are employed (1,000) and those who are unemployed but actively seeking employment (100). Therefore, the labour force is 1,100 (1,000 + 100). The working-age population is 15,000. Therefore, the labour force participation rate is (1,100/15,000) × 100 percent, which is equal to choice C.

Table 51 Consider the Data Above for a Simple Economy