I am studying for my econ test and this is a homework problem:
11. The population of S. Kosmavia is 10,000 people. Only 10% of the population belongs to the labor force because the rest 90% are lazy people spending their time making fun of those working. If 995 people are currently employed what is the unemployment rate?
A. 90%
B. 0.5% (Answer Key says B is the correct answer)
C. 10%
D. 5%
This is the answer the KEY gave me but I thought
Unemployment rate= Unemployed / Labor Forcer
Labor Force = Unemployed + Employed
(Unempl.) 9005 / 100000 = .9005 which is 90%
So what am I doing wrong?
Econ Unemployment Question?
Unemployment is only those people that are searching for a job that means that there are 1000 people that are looking for a job 10% of the 10,000 people and then of the 1000 looking for a job 995 have a job which leads to 5/1000, or .005 or .5% Remember that the only part of the population that counts as labor force is those that are looking for jobs.
Econ Unemployment Question? loan
agreed.
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