📚 Learning Guide
Calculating Unemployment Rate
easy

What is the unemployment rate if a country has 1,000,000 people in the labor force and 50,000 of them are unemployed?

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Learning Path

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Choose the Best Answer

A

5%

B

10%

C

2%

D

7%

Understanding the Answer

Let's break down why this is correct

Answer

To find the unemployment rate, you need to compare the number of unemployed people to the total number of people in the labor force. In this case, you have 50,000 unemployed people out of a total labor force of 1,000,000. To calculate the unemployment rate, you divide the number of unemployed people by the total labor force and then multiply by 100 to get a percentage. So, you would calculate (50,000 ÷ 1,000,000) × 100, which equals 5%. This means the unemployment rate in this country is 5%, indicating that 5 out of every 100 people in the labor force are not currently working.

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 that 50,000 is half of 1,000,000; This answer could come from dividing incorrectly.

Key Concepts

labor market fluctuations.
Topic

Calculating Unemployment Rate

Difficulty

easy level question

Cognitive Level

understand

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