The Number of Adults Not in the Labor Force of a Country

question 113

Multiple Choice

The number of adults not in the labor force of a country equals 6 million,and the number of individuals employed is 5 million.If there are 12 million potential adult workers in the economy,what is the current unemployment rate in this country?

• A) 12.45 percent
• B) 16.67 percent
• C) 21 percent
• D) 30.55 percent

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Definitions:

Rent

The payment made by a tenant to a landlord for the use of a property, room, or apartment for a specified period.

Depreciation

Accounting method of allocating the cost of a tangible or physical asset over its useful life, reflecting wear and use over time.

Indirect Business Taxes

Taxes levied on goods and services rather than on income or profits, such as sales tax or value-added tax, ultimately passed on to consumers in the form of higher prices.

National Income

The total amount of money earned within a country, including wages, rent, interest, and profits.