If the population older than 16 years of age equals 150 million, the labor force equals 110 million, and the total number of persons employed equals 98 million, then the unemployment rate is:

Question

Quizplus · Accepted Answer

The labor force participation rate is the ratio of the labor force to the population older than 16 years of age:

Labor force participation rate = Labor force / Population older than 16 years of age = 110 million / 150 million = 0.7333 or 73.33%

The unemployment rate is the ratio of the unemployed to the labor force:

Unemployment rate = (Labor force - Employed) / Labor force = (110 million - 98 million) / 110 million = 0.109 or 10.9%

Therefore, the best choice is C, 10.9 percent.

If the Population Older Than 16 Years of Age Equals