📚 Learning Guide
Calculating Unemployment Rate
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If Zeta's labor force is 100,000 and 8,000 are unemployed but seeking work, what is the unemployment rate?

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Learning Path
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Choose the Best Answer

A

8%

B

5%

C

10%

D

12%

Understanding the Answer

Let's break down why this is correct

Answer

To find the unemployment rate, you need to know how many people are unemployed and the total size of the labor force. In this case, Zeta's labor force is 100,000 people, and there are 8,000 people who are unemployed but looking for a job. The unemployment rate is calculated by dividing the number of unemployed people by the total labor force and then multiplying by 100 to get a percentage. So, you take 8,000 and divide it by 100,000, which gives you 0. 08.

Detailed Explanation

To find the unemployment rate, divide the number of unemployed people by the total labor force. Other options are incorrect because This answer might come from thinking the unemployed are a smaller part of the labor force; Some might think 10% is correct by rounding up.

Key Concepts

Unemployment Rate Calculation
Labor Force Participation
Economic Indicators
Topic

Calculating Unemployment Rate

Difficulty

medium level question

Cognitive Level

understand

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