ECONOMICS (CBSE/UGC NET)

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ECONOMICS

TECHNOLOGY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A labor force of 20 million people has 18.5 million people employed. Find the unemployment rate.
A
10%
B
8.5%
C
7.5%
D
6%
Explanation: 

Detailed explanation-1: -The unemployment rate represents the number of unemployed people as a percentage of the labor force (the labor force is the sum of the employed and unemployed). The unemployment rate is calculated as: (Unemployed รท Labor Force) x 100.

Detailed explanation-2: -Labor Force: the sum of employment and unemployment. Unemployment Rate: the number of unemployed divided by the labor force, expressed as a percentage.

Detailed explanation-3: -Employment rates are defined as a measure of the extent to which available labour resources (people available to work) are being used. They are calculated as the ratio of the employed to the working age population.

Detailed explanation-4: -Answer and Explanation: The unemployment rate is the amount of people unemployed over the size of the labor force. The amount of people unemployed is 125-120=5 million. Thus, the unemployment rate is 5/125=4%.

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