Question

In a country, the total population is \(1200\) million. Out of this, \(300\) million are below 15 years of age and \(100\) million are above 60 years of age. The labour force consists of \(480\) million persons. The Labour Force Participation Rate (LFPR) is:

• A. \(40%\)
• B. \(50%\)
• C. \(60%\)
• D. \(75%\)

Hint:

Remember: \[ LFPR=\frac{\text{Labour Force}}{\text{Total Population}}\times100 \] CUET often gives extra demographic data to confuse students. Focus only on the quantities required in the formula.

Answer 1

The Correct Option is A

Concept: Labour Force Participation Rate (LFPR) is one of the most important concepts from Employment chapter in Macroeconomics and Indian Economic Development. It measures the percentage of total population that is part of the labour force. The formula is: \[ LFPR=\frac{\text{Labour Force}}{\text{Total Population}}\times100 \] where Labour Force includes both employed and unemployed persons who are willing and able to work.

Step 1: Identify the values given in the question. Total Population: \[ 1200\text{ million} \] Labour Force: \[ 480\text{ million} \]

Step 2: Apply the LFPR formula. \[ LFPR = \frac{480}{1200} \times100 \] \[ = 0.4\times100 \] \[ = 40 \] \[ =40% \]

Step 3: Understand why age-group data is given. The population below 15 years and above 60 years has been provided merely to distract students. For Labour Force Participation Rate, we directly use: \[ \text{Labour Force} \] and \[ \text{Total Population} \] Therefore those values are not required for calculation.

Step 4: Verification. \[ 40%\text{ of }1200 = 480 \] Hence our answer is correct.

Step 5: Final conclusion. Therefore: \[ \boxed{LFPR=40%} \] Hence, \[ \boxed{\text{Option (A)}} \]