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QuizMultiple Choice

Production, Markets, and Trade — Quiz

Question 1 • Financial Math

A country has a total population of 10 million. Of these, 6 million are part of the labor force, but only 5 million are currently employed. Which explains how to calculate the unemployment rate?

Answer
A
Divide 5 million by 10 million. Then multiply by 100.
B
Divide 1 million by 6 million. Then multiply by 100.
C
Divide 5 million by 6 million. Then multiply by 100.
D
Divide 1 million by 10 million. Then multiply by 100.

Explanation

The unemployment rate is the number of unemployed people divided by the labor force, then multiplied by 100. There are 6 million people in the labor force and 5 million employed, so 1 million are unemployed. Divide 1 million by 6 million and multiply by 100; this is choice D, “Divide 1 million by 6 million. Then multiply by 100.”

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