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Chapter 7: Q.1 (page 161)

Suppose that you are given the following information:

a. If the labour force participation rate is 65 per cent, what is the labour force?

b. How many workers are employed?

c. What is the unemployment rate?

Short Answer

Expert verified

a. 214.5million

b. 61.5million

c.3.9627%

Step by step solution

01

introduction

Given,

Total population = 330million

Unemployment = 8.5million

Labour force participation rate =65%

02

explanation part (a)

We know,

Labour force = Rate of unemployment×Total population

⇒0.65×330=214.5million

03

part (b)

We know,

Number of employed = total population - Adult, noninstitutionalized, nonmilitary population - unemployed

⇒330-260-8.5=61.5million

04

part (c)

We know,

unemployment rate = (number of unemployed÷total labour force)×100

⇒8.5214.5×100=3.9627%

The unemployment rate is obtained.

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