Chapter 7: Problem 45

A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What's the unemployment rate? What share of population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.

Short Answer

Expert verified

In summary, the unemployment rate in the given country is 9.09%, and the share of the adult population in the labor force is 68.75%. The pie chart would show the following divisions: employed at 62.5%, unemployed at 6.25%, and out of the labor force at 31.25%.

Step by step solution

Calculate Labor Force

Find the total labor force by adding the number of employed and unemployed individuals. Labor force = Employed + Unemployed Labor force = 5,000,000 + 500,000 Labor force = 5,500,000

Calculate Unemployment Rate

Find the unemployment rate by dividing the number of unemployed individuals by the total labor force and multiplying by 100. Unemployment rate = (Unemployed / Labor force) × 100 Unemployment rate = (500,000 / 5,500,000) × 100 Unemployment rate = 9.09%

Calculate Population Share in Labor Force

Find the share of the population in the labor force by dividing the labor force by the total adult population and multiplying by 100. Share of population in labor force = (Labor force / Total adult population) × 100 Share of population in labor force = (5,500,000 / 8,000,000) × 100 Share of population in labor force = 68.75%

Calculate the Number of Adult Population Out of Labor Force

Find the number of individuals who are out of the labor force by subtracting the labor force from the total adult population. Out of labor force = Total adult population - Labor force Out of labor force = 8,000,000 - 5,500,000 Out of labor force = 2,500,000

Sketch the Pie Chart

To sketch the pie chart, divide the adult population into three groups: employed, unemployed, and out of labor force. Use the percentages we calculated for each group. - Employed: 5,000,000 (62.5% of the adult population) - Unemployed: 500,000 (6.25% of the adult population) - Out of labor force: 2,500,000 (31.25% of the adult population) Create a pie chart with these percentages, making sure the total sums up to 100%. To summarize: - The unemployment rate is 9.09% - The share of the population in the labor force is 68.75% - A pie chart has been sketched to visually represent these groups in the adult population.

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