Question

In April​ 2017, the​ working-age population of the United States was 254.6 million. The​ working-age population is divided into those in the labor force​ (160.2 million) and those not in the labor force​ (94.4 million). The labor force is divided into the employed​ (153.2 million) and the unemployed​ (7.1 million). Those not in the labor force are divided into those not available for work​ (88.7 million) and those available for work​ (5.7 million).​ Finally, those available for work but not in the labor force are divided into discouraged workers​ (0.5 million) and those currently not working for other reasons​ (5.2 million). Use this data to help determine which one of the following statements is​ true: A. The unemployment rate is StartFraction 7.1 million Over 160.2 million EndFraction times 100 equals 4.4 % . B. The labor force participation rate is StartFraction 160.2 million Over 254.6 million EndFraction times 100 equals 62.9 % . C. The labor force is 254.6 million. D. Both A and B above are true.

Answer 1

Answer:

D. Both A and B above are true

Explanation:

A. The unemployment rate equals 4.4%

The unemployment rate for a country is the division between the Unemployed ( 7.1 million) and the Labor force (160.2 million):

$Unemployment rate = \frac{7.1}{160.2} * 100 = 4.4$

That is true.

B. The labor force participation rate is 62.9%

The participation rate is simply what percentage represents a number versus the total, in this case, the percentual participation of the labor force in the working age population:

$Participation rate = \frac{160.2}{254.6} * 100 = 62.9$

That is true.

C. The labor force is 254.6 million

This is false, the labor force is 160.2 million, the working age population is 254.6 million.

So the correct answer is D.