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:
A)8 percent.
B)38 percent.
C)10.9 percent.
D)28 percent.

Question

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:
A)​8 percent.
B)​38 percent.
C)​10.9 percent.
D)​28 percent.

Quizplus · Accepted Answer

The labor force participation rate is the proportion of the working-age population that is either employed or actively seeking employment, which is 110 million / 150 million = 0.7333 or 73.33%. 
The unemployment rate is the proportion of the labor force that is unemployed, which is (110 million - 98 million) / 110 million = 0.109 or 10.9%. Therefore, the answer is C.

If the Population Older Than 16 Years of Age Equals