If the number of employed persons in a country equals 24 million, the number of unemployed persons equals 8 million, and the number of persons in the population aged 16 and older equals 40 million, the unemployment rate equals:
A)8 percent.
B)20 percent.
C)25 percent.
D)32 percent.
E)60 percent.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated by dividing the number of unemployed persons by the total labor force, which is the sum of employed and unemployed persons.

So, the labor force in this case is:

Labor force = Employed + Unemployed
Labor force = 24 million + 8 million
Labor force = 32 million

Then, the unemployment rate is:

Unemployment rate = (Unemployed / Labor force) x 100%
Unemployment rate = (8 million / 32 million) x 100%
Unemployment rate = 25%

Therefore, the correct answer is B) 20 percent.

If the Number of Employed Persons in a Country Equals