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 working-age population in this economy?
A) 200 million.
B) 300 million.
C) 400 million.
D) 500 million.
E) 600 million.

Question

Quizplus · Accepted Answer

Since the unemployment rate is 6%, the employment rate can be found to be 94% (100% - 6%). 
The participation rate is given as 60%, so the non-participation rate is 40% (100% - 60%). 
The working-age population can be calculated as: 
Working-age population = (Employment rate / Non-participation rate) x Number of people not in the labour force
= (94% / 40%) x 200 million
= 235 million x 5
= 1.175 billion
Therefore, there are 500 million people in the working-age population in this economy.

Data for an Economy Show That the Unemployment Rate Is