19. In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 mill

Question

19. In a country with 200 million people aged 16 years and older, 120 million in the labor force, and 114 million employed, what is the unemployment rate?

A. 3 percent

B. 4 percent

C. 5 percent

D. 6 percent

E. 7 percent

Answer 1

If there are 120mil in the labor force, but there are 114mil who are actually employed, then there are 6mil who want to be employed, but are not.

I don't have a calculator on me, but I would guess that makes the unemployment rate 7% (E.)

Answer 2

C. 5 percent (120-114)/120=0.05=5%