Question

table 28-2
suppose people in the adult population in a small country are classified based on their age.

labor force status	age	age
number employed	400,000	100,000
number unemployed	25,000	7,000
number in population	600,000	200,000

refer to table 28-2. in the proper order, which age group has the highest unemployment rate and which has the highest labor-force participation rate?

• 55 and older, under 55
• under 55, under 55
• 55 and older, 55 and older
• under 55, 55 and older

Explanation:

Step1: Calculate Unemployment Rate

Unemployment Rate = (Number Unemployed / Labor Force) × 100. Labor Force = Employed + Unemployed.
For Less than 55: Labor Force = 400,000 + 25,000 = 425,000. Unemployment Rate = (25,000 / 425,000) × 100 ≈ 5.88%.
For 55 and Older: Labor Force = 100,000 + 7,000 = 107,000. Unemployment Rate = (7,000 / 107,000) × 100 ≈ 6.54%.

Step2: Calculate Labor - Force Participation Rate

Labor - Force Participation Rate = (Labor Force / Population) × 100.
For Less than 55: (425,000 / 600,000) × 100 ≈ 70.83%.
For 55 and Older: (107,000 / 200,000) × 100 = 53.5%.

Answer:

55 and older, under 55 (corresponding to the first option: 55 and older, under 55)