Scenario 7.2 Suppose it has been recently predicted that in the year 2020, the total number of residents in the United States will be 315.5 million, the number of residents under 16 years of age will be 85 million, the number of institutionalized adults will be 17 million, the number of adults not actively looking for work will be 39 million, and the number of unemployed will be 21.5 million.
Refer to the data in Scenario 7.2.What is the predicted unemployment rate in the United States for the year 2020?
A)6.8 percent
B)8.3 percent
C)11.5 percent
D)12.3 percent
E)16.5 percent

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed divided by the labor force. The labor force is the total population minus those under 16, institutionalized adults, and adults not actively looking for work. Thus, the labor force is 315.5 - 85 - 17 - 39 = 174.5 million. The unemployment rate is (21.5 / 174.5) * 100 = 12.3 percent.