Table 9-1
Consider the data above for a simple economy.
-Refer to Table 9-1.The unemployment rate for this simple economy equals
A)(100/1,000)× 100.
B)(100/1,100)× 100.
C)(100/15,000)× 100.
D)(100/20,000)× 100.

Question

Table 9-1
  Consider the data above for a simple economy.
-Refer to Table 9-1.The unemployment rate for this simple economy equals
A)(100/1,000)× 100. 
B)(100/1,100)× 100. 
C)(100/15,000)× 100. 
D)(100/20,000)× 100.

Quizplus · Accepted Answer

The unemployment rate is the number of unemployed individuals divided by the total labor force. From the data given in the table, the total labor force is equal to the sum of employed and unemployed individuals, which is 1,100. The number of unemployed individuals is 100. Therefore, the unemployment rate equals (100/1,100) × 100, which is approximately 9.09%. Choice B correctly calculates the unemployment rate using this formula. The other options either use the wrong numerator or denominator or the wrong formula altogether.

Table 9-1 Consider the Data Above for a Simple Economy