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 employed in this economy?
A) 6 million.
B) 188 million.
C) 282 million.
D) 300 million.
E) 500 million.

Question

Quizplus · Accepted Answer

The participation rate is 60%, meaning 60% of the total population 15 years or older is in the labor force. If 200 million are not in the labor force, then the total population 15 years or older is 200 million / (1 - 0.60) = 500 million. The labor force is 60% of 500 million, which is 300 million. With a 6% unemployment rate, 6% of 300 million are unemployed, which is 18 million. Therefore, the number of employed people is 300 million - 18 million = 282 million.

Data for an Economy Show That the Unemployment Rate Is