Chapter 12, Problem 3MCQ

To determine

The question requires us to determine the number of unemployed people.

Explanation of Solution

  $\begin{array}{l}\begin{array}{l}\text{Given,}\hfill \\ \text{Labor force = 100,000 workers}\hfill \\ \text{Part time workers = 20,000}\hfill \\ \text{Full time workers = 70,000}\hfill \end{array}\\ \text{Number of employed people = Number of part-time workers + Number of full-time workers}\\ \text{Number}\text{of}\text{employed}\text{people = 20,000 + 70,000}\\ \text{= 90,000}\\ \text{Labor force = Number of employed people + Number of unemployed people}\\ \text{Rearrange the equation,}\\ \text{Number of unemployed people = Labor force – Number of employed people}\\ \text{Number}\text{of}\text{unemployed}\text{people = 100,000-90,000}\\ \text{= 10,000}\\ \text{Labor force = Number of employed people + Number of unemployed people}\\ \text{Rearrange the equation,}\\ \text{Number of unemployed people = Labor force – Number of employed people}\\ \text{Number}\text{of}\text{unemployed}\text{people = 100,000-90,000}\\ \text{= 10,000}\end{array}$ Therefore, 10,000 workers are unemployed.

Option “a” is correct.

Economics Concept Introduction

People are considered unemployed if they are not working currently but are actively looking for a job.