18. What is the unemployment rate in an economy where the entire adult population can be categorized as follows: • 32 million people employed • 2 million people unemployed • 1 million discouraged workers, and • 1 million people who are either students, homemakers, retirees, or other people not seeking employment. A) 6.3% B) 5.6% C) 5.9% D) 4.8%
18. What is the unemployment rate in an economy where the entire adult population can be categorized as follows: • 32 million people employed • 2 million people unemployed • 1 million discouraged workers, and • 1 million people who are either students, homemakers, retirees, or other people not seeking employment. A) 6.3% B) 5.6% C) 5.9% D) 4.8%
Chapter1: Making Economics Decisions
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![### Unemployment Rate Calculation
#### Question
What is the unemployment rate in an economy where the entire adult population can be categorized as follows:
- 32 million people employed
- 2 million people unemployed
- 1 million discouraged workers
- 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
#### Answer Choices:
A) 6.3%
B) 5.6%
C) 5.9%
D) 4.8%
#### Explanation of the Calculation:
The unemployment rate is calculated as the percentage of the labor force that is unemployed. The labor force includes both employed and unemployed people actively seeking work.
1. **Total Labor Force:**
- Employed: 32 million
- Unemployed: 2 million
- Total Labor Force = Employed + Unemployed
- Total Labor Force = 32 million + 2 million = 34 million
2. **Unemployment Rate Formula:**
\[
\text{Unemployment Rate} = \left( \frac{\text{Number of Unemployed}}{\text{Labor Force}} \right) \times 100
\]
3. **Calculation:**
\[
\text{Unemployment Rate} = \left( \frac{2 \, \text{million}}{34 \, \text{million}} \right) \times 100 \approx 5.88\%
\]
Rounding to one decimal place, the unemployment rate is approximately 5.9%.
#### Answer:
C) 5.9%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe3be9b87-a949-46fd-8fcb-61cc2e238448%2F2799b932-ae50-490f-88e6-bcb0f2ab25a0%2Fgqhhx5n_processed.png&w=3840&q=75)
Transcribed Image Text:### Unemployment Rate Calculation
#### Question
What is the unemployment rate in an economy where the entire adult population can be categorized as follows:
- 32 million people employed
- 2 million people unemployed
- 1 million discouraged workers
- 1 million people who are either students, homemakers, retirees, or other people not seeking employment.
#### Answer Choices:
A) 6.3%
B) 5.6%
C) 5.9%
D) 4.8%
#### Explanation of the Calculation:
The unemployment rate is calculated as the percentage of the labor force that is unemployed. The labor force includes both employed and unemployed people actively seeking work.
1. **Total Labor Force:**
- Employed: 32 million
- Unemployed: 2 million
- Total Labor Force = Employed + Unemployed
- Total Labor Force = 32 million + 2 million = 34 million
2. **Unemployment Rate Formula:**
\[
\text{Unemployment Rate} = \left( \frac{\text{Number of Unemployed}}{\text{Labor Force}} \right) \times 100
\]
3. **Calculation:**
\[
\text{Unemployment Rate} = \left( \frac{2 \, \text{million}}{34 \, \text{million}} \right) \times 100 \approx 5.88\%
\]
Rounding to one decimal place, the unemployment rate is approximately 5.9%.
#### Answer:
C) 5.9%
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