Question

given a total population of 5,000 residents and a labor force of 4,000 residents, 3,500 of which are employed, what is the unemployment rate? (1 point)

87.5%

10%

12.5%

70%

Explanation:

Step1: Calculate the number of unemployed people

The labor force is the sum of employed and unemployed people. So, the number of unemployed people \( U = \text{Labor Force}-\text{Employed} \).
Given labor force \( L = 4000 \) and employed \( E=3500 \), then \( U = 4000 - 3500=500 \).

Step2: Calculate the unemployment rate formula

The unemployment rate formula is \( \text{Unemployment Rate}=\frac{U}{L}\times100\% \).
Substitute \( U = 500 \) and \( L = 4000 \) into the formula: \( \text{Unemployment Rate}=\frac{500}{4000}\times 100\% \).

Step3: Simplify the expression

\( \frac{500}{4000}\times100\%=\frac{1}{8}\times100\% = 12.5\% \).

Answer:

C. 12.5%