Suppose that the adult population is 210 million, and there are 130 million who are employed and 5 million who are unemployed. Calculate the unemployment rate and the labor force participation rate.

Unemployment rate= 3.7%

Labor force participation rate= 64.3%

Explanation:

The adult population is 210 million

The number of unemployed adults is 130 million

The number of unemployed adults is 5 million

(a) Unemployment rate= Number of unemployed/(Number of unemployed+Number of employed)×100

= 5 million/(5 million+130 million) × 100

= 5 million/135 million×100

= 0.037×100

= 3.7%

(b) Labor force participation rate= (Number of employed+Number of unemployed)/Adult population

= (5 million+ 130 million)/210 million

= 135 million/210 million

= 0.643×100

= 64.3%

in 2001, dell computer became the world’s largest personal computer vendor, continuing to

gain market share and post profits in an industry struggling with slumping sales and billions of

dollars in losses. dell sells 90% of its pcs directly to the final customer, largely bypassing the

reseller channel that accounts for most of the world’s pc sales. this direct customer relationship

is the key to dell’s business model, and provides distinct advantages over the indirect sales

model. dell’s direct relationship with the customer allows it to tailor its offerings to customer

needs, offer add-on products and services, and use the internet to offer a variety of customer

services. in addition, dell’s pcs are built to customers’ specifications upon receipt of an order,

giving dell additional advantages over indirect pc vendors who must try to forecast demand and

ship products based on those forecasts. dell’s direct sales and build-to-order model has achieved

superior performance in the pc industry in terms of inventory turnover, reduced overhead, cash

conversion, and return on investment (kraemer, et al., 2000).

explanation: