Question

Exhibit 6-2

	Civilian	Civilian	Employed
	Noninstitutional	Labor Force	Persons
Year	Population (millions)	(millions)	(millions)
1	250	200	175
2	400	300	200
3	500	400	350
4	1000	800	720

Refer to Exhibit 6-2. The employment rate in year 2 is

a) 12 1/2 percent.

b) 75 percent.

c) 87 1/2 percent.

d) 30 percent.

e) 50 percent.

Answer 1

Civilian non-institutional population in Year 2 = 400 million

Employed in Year 2 = 200 million

Calculate the Employment rate -

Employment rate = (Employed/Civilian non institutional population) * 100

Employment rate = (200 million/400 million) * 100

Employment rate = 50%

The employment rate in Year 2 is 50 percent.

Hence, the correct answer is the option (e).