Unemployment rate formula

Steps:

• Recall unemployment rate = (unemployed / labor force) × 100.
• Identify unemployed = 2 million, labor force = 40 million.
• Compute 2 / 40 = 0.05.
• Multiply by 100 to get 5%.

Why B is correct:

• 5% matches the standard formula: (unemployed ÷ labor force) × 100 = (2 ÷ 40) × 100.

Why the others are wrong:

• A uses employed (38 million) in denominator instead of labor force.
• C divides by working-age population minus unemployed (45 - 2 - 40? miscalculation).
• D divides by employed only (2 ÷ 38? error in base).

Final answer: B