Question

Suppose there are 100 million people in the labor force of which 6 million are unemployed. During the next month, 200,000 people lose their jobs and 300,000 find jobs. The new total number of employed people is ____.

	A.	100.3 million
	B.	94.1 million
	C.	94.3 million
	D.	100.1 million

Answer 1

Solution:-

Total labor force = 100 million

Unemployed = 6 million

Employed = Total labor force - Unemployed

               = 100 - 6 million

              = 94 million

In next month, Additional unemployment = 200,000

In next month, Additional employment = 300,000

New total number of employed people = Previously employed + new employed - new unemployment

                                                        = 94 million + 300,000 - 200,000

                                                        = 94.1 million

So, option B is correct. (Reasoning is given below)

Option A and D are incorrect according to calculations

Option C is incorrect which is 94.3 million. There can be confusion that should we take new unemployed people or not? So, we have to consider them.

Reason:- Because, total workforce is 100 million, out of which 94 million are employed and 6 million are unemployed. Out of 94 million people who are employed, there are 200,000 people who are losing their job and 300,000 will employed in that month. So, effectively 100,000 will be employed more.