CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

Suppose there are 2,500 people in the nation of Utopia. Of the people over 16 years old, 1,800 are employed, 200 are unemployed and looking for work, and 200 are unemployed and are not looking for work. The unemployment rate in Utopia is ______.
A. 10%
B. 11.11%
C. 16%
Explanation: The people not in the work force (the 200 unemployed who are not looking for a job) are not accounted for as being unemployed. They are discouraged workers who have left the workforce. The unemployment rate is 200/2000 = 0.1 or 10%.

User Contributed Comments 3

User Comment
moma20 2000 because 1800 are employed +200 are unemployed
ambar unemployment rate = (number of unemployed but looking/labor force)*100
Here,
number of unemployed but looking = 200 labor force = 2000
So,
unemployment rate = 200/2000 *100 = 10%
ColonelCFA damn i made a dumb mistake
You need to log in first to add your comment.