Suppose that some country had an adult population of about 25 million,a labor-force participation rate of 60 percent,and an unemployment rate of 6 percent.How many people were employed?

Question

Quizplus · Accepted Answer

The labor-force participation rate of 60 percent means that 60 percent of the adult population (25 million) was in the labor force, which comes out to be 0.6 x 25 million = 15 million.

The unemployment rate of 6 percent means that 6 percent of the labor force was unemployed, which comes out to be 0.06 x 15 million = 0.9 million.

Therefore, the number of people employed would be the difference between the labor force and the unemployed population:

Number of people employed = Labor force - Unemployed population 
= 15 million - 0.9 million 
= 14.1 million

Hence, option B) is the correct choice.

Suppose That Some Country Had an Adult Population of About