In a small country, there are 5,000 people in the labor force and 4,000 people are employed. The labor force participation rate equals
A) 40 percent.
B) 90 percent.
C) 80 percent.
D) an undetermined amount given the lack of information.

Question

Quizplus · Accepted Answer

The labor force participation rate is calculated as the labor force divided by the total population eligible to work (not just those in the labor force). Since the total population eligible to work is not provided, the labor force participation rate cannot be determined from the given information.

In a Small Country, There Are 5,000 People in the Labor