Based on the following data for the country of Tiny Town, the unemployment rate equals Population = 100
Labor force = 80
Number of employed persons = 70
Number of discouraged workers = 5
A) 10/100 × 100.
B) 10/80 × 100.
C) 15/80 × 100.
D) 5/70 × 100.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed persons divided by the labor force, then multiplied by 100. In Tiny Town, there are 80 people in the labor force and 70 are employed, so 10 are unemployed. Therefore, the unemployment rate is (10/80) × 100.

Based on the Following Data for the Country of Tiny