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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 ______.
Correct Answer: A
The people not in the work force, the 200 unemployed who are not looking for a job, are not accounted for being unemployed. They are discouraged workers who have left the workforce. The unemployment rate is 200/2000 = 0.1 or 10%.