Question

table 9 - 1
total population 20,000
working - age
population 15,000
employment 1,000
unemployment 100
consider the data above for a simple economy.
refer to table 9 - 1. the labor force participation rate for this simple economy equals
(1,100/15,000)×100.
(1,100/20,000)×100.
(1,000/15,000)×100.
(1,000/1,100)×100.

Explanation:

Step1: Recall Labor Force Participation Rate Formula

The labor force participation rate is calculated as \(\frac{\text{Labor Force}}{\text{Working - age Population}}\times100\), where the labor force is the sum of employment and unemployment.

Step2: Calculate Labor Force

Employment is \(1000\) and unemployment is \(100\), so the labor force \(= 1000 + 100=1100\).

Step3: Identify Working - age Population

The working - age population is \(15000\).

Step4: Formulate the Labor Force Participation Rate

Using the formula, the labor force participation rate \(=\frac{1100}{15000}\times100\).

Answer:

\((1,100/15,000)\times100\) (the first option)