MCQ Economics Paper 1 Q23

[Nobody]

The data in the table from a countrys labour market statistics
Adult population=100m
number of persons employed=45m
number of persons unemployed-5m

what is the unemployment rate and the participation rate?
A)unemployment= 5% participation rate= 45%
B)unemployment= 10% participation rate= 50%
C)unemployment= 10% participation rate= 45%
D) unemployment= 5% participation rate= 50%

please exlpain

 

[nirajgrg]

the ans is B
unemployment rate= no. of people unemployed/labour force * 100 (labour force= employed + unemployed)
= 5m/50m * 100 = 10%
participation rate= labour force/total adult popn * 100
= 50m/100m * 100 = 50%