Question

Suppose that the total Population of Wazoola is 200 million, the number of employed is 80 million, and the Labor Force Participation Rate is 60%. If 60 million people in Wazoola are ineligible to work, how many people in Wazoola are unemployed? Select one: a. 4 million individuals b. 10 million individuals c. 12 million individuals d. 20 million individuals e. 40 million individuals

Answer 1

Ans- a

Explanation-

The labour force participation rate is the ratio of sum of all workers who are employed or actively seeking employment (unemployed) to the no of people eligible to participate in labour force.

If 60 million people are ineligible to work then the eligible population to participate in labour force is equal to 140 million.

So that given the 80 million people employed and 60% labour force participation rate we can calculate the unemployed people as follows.

60% = (80 + unemployed)/140

60% of 140 = 80 + unemployed

84 = 80 + unemployed

Unemployed= 84-80 = 4 million individuals