A country with a population of eight million adults has five...

Name: Problem 45, Chapter 7: Principles of Macroeconomics for AP Courses
Uploaded: 2021-02-18T09:21:14-08:00
Duration: 6 min 43 s
Channel: Oluwadamilola Ameobi
Description: A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What's the unemployment rate? What share of population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.

A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What's the unemployment rate? What share of population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.

Key Concepts

Labor Force Participation

The labor force participation rate indicates the share of the adult population that is engaged in the labor market, either through employment or active job seeking. It is calculated by dividing the labor force by the total adult population, providing insights into the overall employment engagement of a population.

Data Visualization (Pie Chart)

A pie chart is a graphical tool used in data visualization to show parts of a whole as individual slices of a circle. It is particularly useful for illustrating how an overall total is segmented into distinct groups, such as the breakdown of the adult population into employed, unemployed, and out of the labor force.

Unemployment Rate

The unemployment rate is a metric used to assess the health of an economy by measuring the proportion of the labor force that is unemployed and actively seeking employment. It is calculated by dividing the number of unemployed individuals by the total labor force (the sum of employed and unemployed individuals), and then multiplying by 100 to obtain a percentage.

Labor Force

The labor force encompasses all individuals within a certain age group who are either employed or actively looking for work. This measure excludes those who are not participating in the job market, such as retirees, students, or others not seeking employment.

Transcript

00:01 So a country with a population of 8 million adults has 5 million employed.

00:18 So the number of people that are employed is 5 million and the unemployed is 500 ,000.

00:33 And the rest of the population is out of the labor force.

00:37 So the rest is out of labor force.

00:45 So what is the unemployment rate? share of the population is in the labor force and sketch the pie group charts that divides the adult population into three groups.

01:04 So this is the population and this is the employee, this is the unemployed and the rest.

01:08 So therefore the labor force, the people that are in the labor post will be equals to the employed plus unemployed.

01:24 So that will be 5 million plus 500 ,000.

01:37 So then that will be 5 ,500 ,000 people that will be in the labor force.

01:45 So therefore, the unemployment rates will be equal to the unemployed divided by the labor force multiplied by 100.

02:09 So the unemployed is equal to, if we go back, it's equal to 500 ,000.

02:14 So this will be equals to 500 ,000 divided by the labor force is 5 ,000.

02:21 55 million or rather 5 million 500 ,000 then multiplied by 100 so this is going to give you an unemployment rate of 9 .09 percent so therefore the share of the population in the labor force would be equal to share of population population in the labor force will be equals to 5 million 500 thousand which is is the total labor force divided by the entire population, which is 80, which is 8 million adults, rather.

03:28 Then you multiply this by 100...

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