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If 72 percent of a country's population is of working age but the labor-force participation rate is only 50 percent, what percentage of the total population actually participates in the labor market?

Answer and explanation

Correct answer: 36 percent

The 72 percent figure describes the whole working-age group, not the share that actually enters the labour market. The participation rate must therefore be applied to that 72 percent. Since only half of the working-age population participates, the participating share is one-half of 72 percent. This is a multiplication of two proportions, not a choice between the two given percentages.

Convert the values to decimals: \(72\%=0.72\) and \(50\%=0.50\). Then \(0.72\times0.50=0.36\), or 36 percent of the total population. Thus option B is correct. The answer is not 50 percent, because that rate applies only within the working-age group, and it is not 72 percent, because not everyone of working age participates.

Related tags

Labour Force ParticipationWorking Age PopulationEconomic ParticipationPercentage CalculationAge StructurePopulation CompositionGeographyClass 12 Mcq

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