You Are Given the Following Information About an Economy

question 152

Short Answer

You are given the following information about an economy:
Labor force: 167 million
Not in the labor force: 33 million
Employed: 145 million
Answer the following questions to one decimal point:
a.What is the unemployment rate?
b.What is the relevant population?
c.What is the labor force participation rate?

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Definitions:

Fixed Costs

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments or employee wages.

Net Income

The amount of profit left after all operating expenses, taxes, and costs have been subtracted from total revenue.

Variable Costs

Expenses that fluctuate with the level of output or sales, such as raw materials and direct labor.

Fixed Costs

Costs that do not vary with the level of production or sales, remaining constant regardless of business activity levels.