If the number of unemployed equals 10,000, the number of employed equals 70,000, and the number not in the labor force is 20,000, the labor-force participation rate is O 90% O 80% O 70% 60%
If the number of unemployed equals 10,000, the number of employed equals 70,000, and the number not in the labor force is 20,000, the labor-force participation rate is O 90% O 80% O 70% 60%
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![### Understanding Labor-Force Participation Rate
If the number of unemployed equals 10,000, the number of employed equals 70,000, and the number not in the labor force is 20,000, determine the labor-force participation rate from the options below:
- 90%
- 80%
- 70%
- 60%
**Explanation:**
The labor-force participation rate is calculated using the formula:
\[ \text{Labor-force participation rate} = \left( \frac{\text{Labor force}}{\text{Working-age population}} \right) \times 100 \]
Where:
- **Labor force** = Number of employed + Number of unemployed
- **Working-age population** = Labor force + Number not in labor force
Let's calculate:
1. **Labor Force** = 70,000 (employed) + 10,000 (unemployed) = 80,000
2. **Working-age Population** = 80,000 (labor force) + 20,000 (not in labor force) = 100,000
Using the formula:
\[ \text{Labor-force participation rate} = \left( \frac{80,000}{100,000} \right) \times 100 = 80\% \]
The correct answer is **80%**.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9c371247-74ac-400b-bc7d-96d516bb0e38%2F2f42bd48-d320-437b-8923-86191b1bbd7c%2Fzkie80f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Understanding Labor-Force Participation Rate
If the number of unemployed equals 10,000, the number of employed equals 70,000, and the number not in the labor force is 20,000, determine the labor-force participation rate from the options below:
- 90%
- 80%
- 70%
- 60%
**Explanation:**
The labor-force participation rate is calculated using the formula:
\[ \text{Labor-force participation rate} = \left( \frac{\text{Labor force}}{\text{Working-age population}} \right) \times 100 \]
Where:
- **Labor force** = Number of employed + Number of unemployed
- **Working-age population** = Labor force + Number not in labor force
Let's calculate:
1. **Labor Force** = 70,000 (employed) + 10,000 (unemployed) = 80,000
2. **Working-age Population** = 80,000 (labor force) + 20,000 (not in labor force) = 100,000
Using the formula:
\[ \text{Labor-force participation rate} = \left( \frac{80,000}{100,000} \right) \times 100 = 80\% \]
The correct answer is **80%**.
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