Question

There are 15 million people living in Marketstan, of whom 9 million are working and 2 million are actively looking for work. What is Marketstan's unemployment rate?

A.10%
B.67%
C.1%
D.11 1%
E.18.10%

Answer 1

Marketstan's unemployment rate is calculated by dividing the number of unemployed persons (2 million) by the total labor force (11 million), and multiplying the result by 100, yielding approximately 18.18%. The closest answer choice is E.18.10%.

Step-by-step explanation:

To calculate Marketstan's unemployment rate, we use the provided figures: 9 million people are employed and 2 million are actively looking for work. The labor force is comprised of both employed persons and those actively seeking employment. Therefore, Marketstan's labor force is the sum of employed and unemployed persons, which is 9 million + 2 million = 11 million people.

The unemployment rate is then found by dividing the number of unemployed persons by the total labor force and multiplying by 100 to get a percentage. Thus, Marketstan's unemployment rate is (2 million unemployed / 11 million labor force) x 100, which equals approximately 18.18%.

With the options provided, the correct answer is closest to E.18.10%.