In an economy with a population of 100 million persons,42 million hold civilian jobs and 6 million are not working but are looking for a job.The unemployment rate is
A) 12.5%.
B) 87.5%
C) 6%
D) 14.29%
E) There is not enough information to answer this question.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force, then multiplied by 100 to get a percentage. Here, the labor force consists of those holding civilian jobs (42 million) plus those not working but looking for a job (6 million), totaling 48 million. The number of unemployed individuals is 6 million. Therefore, the unemployment rate is (6 million / 48 million) * 100 = 12.5%.

In an Economy with a Population of 100 Million Persons,42