Assume that in an economy with 200M inhabitants,90M work,4M are looking for a job,3M receive unemployment insurance compensation,and 6M receive unemployment insurance compensation and are looking for a job. What is the unemployment rate?
A) 13%
B) 10%
C) 6.5%
D) 5%

Question

Quizplus · Accepted Answer

To calculate the unemployment rate, we need to take the number of unemployed people (in this case, those who are looking for a job and not receiving unemployment insurance) and divide it by the labor force (total employed plus total unemployed).

So, the number of unemployed people would be 4M - 3M = 1M.

The labor force would be 90M + 1M = 91M.

Now we can calculate the unemployment rate:

Unemployment rate = (1M / 91M) x 100% = 1.1% x 100% = 10%.

Therefore, the correct choice is B) 10%.

Assume That in an Economy with 200M Inhabitants,90M Work,4M Are