Data for an economy show that the unemployment rate is 10%,the participation rate is 80%,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) 800 million.
C) 1,000 million.
D) 1,600 million.
E) 1,800 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 and this represents 20% of the working-age population (since the participation rate is 80%), then the total working-age population is 200 million / 0.20 = 1,000 million.

Data for an Economy Show That the Unemployment Rate Is