Thursday, July 16, 2009

Econ Unemployment Question?

I am studying for my econ test and this is a homework problem:



11. The population of S. Kosmavia is 10,000 people. Only 10% of the population belongs to the labor force because the rest 90% are lazy people spending their time making fun of those working. If 995 people are currently employed what is the unemployment rate?



A. 90%



B. 0.5% (Answer Key says B is the correct answer)



C. 10%



D. 5%



This is the answer the KEY gave me but I thought



Unemployment rate= Unemployed / Labor Forcer



Labor Force = Unemployed + Employed



(Unempl.) 9005 / 100000 = .9005 which is 90%



So what am I doing wrong?



Econ Unemployment Question?





Unemployment is only those people that are searching for a job that means that there are 1000 people that are looking for a job 10% of the 10,000 people and then of the 1000 looking for a job 995 have a job which leads to 5/1000, or .005 or .5% Remember that the only part of the population that counts as labor force is those that are looking for jobs.



Econ Unemployment Question? loan



agreed.

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