Data for an economy show that the unemployment rate is 6%,the participation rate is 60%,and 200 million people 15 years or older are not in the labour force.How many people are in the labour force in this economy?
A) 80 million.
B) 120 million.
C) 200 million.
D) 300 million.
E) 500 million.

Question

Quizplus · Accepted Answer

The participation rate is the percentage of the working-age population that is either employed or actively looking for work. If 200 million people are not in the labor force, then 40% of the working-age population is not participating. Therefore, 60% of the working-age population is participating, which means the labor force is 300 million people (since 60% of 500 million is 300 million).

Data for an Economy Show That the Unemployment Rate Is