Questions: Total population 20,000 Working-age population 15,000 Employed 1,000 Unemployed 100 Consider the data above for a simple economy. 1) Refer to Table 9-1. The unemployment rate for this simple economy equals A) (100 / 20,000) * 100. B) (100 / 15,000) * 100. C) (100 / 1,100) * 100. D) (100 / 1,000) * 100.

Total population 20,000
Working-age population 15,000
Employed 1,000
Unemployed 100

Consider the data above for a simple economy.
1) Refer to Table 9-1. The unemployment rate for this simple economy equals
A) (100 / 20,000) * 100.
B) (100 / 15,000) * 100.
C) (100 / 1,100) * 100.
D) (100 / 1,000) * 100.

Transcript text: \begin{tabular}{|c|c|c|} \hline Total population & & 20,000 \\ \hline Working-age population & & 15,000 \\ \hline Employed & 1,000 & \\ \hline Unemployed & 100 & \\ \hline \end{tabular} Consider the data above for a simple economy. 1) Refer to Table 9-1. The unemployment rate for this simple economy equals A) $(100 / 20,000) \times 100$. B) $(100 / 15,000) \times 100$. C) $(100 / 1,100) \times 100$. D) $(100 / 1,000) \times 100$.

Solution

Solution Steps

Step 1: Calculate the Labor Force

The labor force is the sum of the employed and unemployed individuals. Given:

Employed = $ 1000 $
Unemployed = $ 100 $

The labor force can be calculated as: \[ \text{Labor Force} = \text{Employed} + \text{Unemployed} = 1000 + 100 = 1100 \]

Step 2: Calculate the Unemployment Rate

The unemployment rate is calculated using the formula: \[ \text{Unemployment Rate} = \left( \frac{\text{Unemployed}}{\text{Labor Force}} \right) \times 100 \] Substituting the values: \[ \text{Unemployment Rate} = \left( \frac{100}{1100} \right) \times 100 \approx 9.09\% \]

Step 3: Evaluate the Multiple-Choice Options

We will evaluate each option to determine which one correctly represents the unemployment rate.