Question

Given a total population of 5,000 residents and a labor force of 4,000 residents, 3,500 of which are employed, what is the unemployment rate?(1 point)
Responses

12.5%
12.5 percent

70%
70 percent

10%
10 percent

87.5%
87.5 percent

Answer 1

To calculate the unemployment rate, you can use the formula:

\[
\text{Unemployment Rate} = \frac{\text{Number of Unemployed}}{\text{Labor Force}} \times 100
\]

1. **Determine the number of unemployed**:
- Total labor force = 4,000
- Employed = 3,500
- Unemployed = Labor Force - Employed = 4,000 - 3,500 = 500

2. **Now, calculate the unemployment rate**:
\[
\text{Unemployment Rate} = \frac{500}{4,000} \times 100 = 12.5\%
\]

So, the unemployment rate is **12.5%** or **12.5 percent**.

The correct response is:
**12.5% or 12.5 percent**.