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O Levels Economics (2281)•2281/12/M/J/25
Question 22 from 2281/12/M/J/25

Explanation

Labor Force Participation Rate

Steps:

  • Identify working-age population as people aged 15-64 eligible to work.
  • Define labor force as those employed or actively seeking employment.
  • Compute participation rate as (labor force / working-age population) × 100.
  • Recognize typical global or national rate from economic data.

Why C is correct:

  • Economic definitions show the labor force participation rate for working-age adults averages around 80% in many developed economies, per standard labor statistics.

Why the others are wrong:

  • A: 30% underestimates; it ignores most employable adults actively working or job-hunting.
  • B: 70% is too low for full participation; it fits older data but not current norms.
  • D: 90% overestimates; it assumes near-universal involvement, excluding students, retirees, and discouraged workers.

Final answer: C

Topic: Employment and unemployment

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