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 over age 16 in the population equals 40 million, the unemployment rate equals:
A)8 percent.
B)20 percent.
C)25 percent.
D)32 percent.

Question

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 over age 16 in the population equals 40 million, the unemployment rate equals:
A)​8 percent.
B)​20 percent.
C)​25 percent.
D)​32 percent.

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed persons divided by the labor force (employed + unemployed), then multiplied by 100. Here, the labor force is 24 million + 8 million = 32 million. The unemployment rate is (8 million / 32 million) * 100 = 25 percent.

If the Number of Employed Persons in a Country Equals