The unemployment rate is defined as
A)the number of unemployed divided by total population
B)the number of people not looking for jobs divided by the labor force
C)the fraction of the labor force that cannot find jobs but who are actively looking
D)the fraction of total population that cannot find jobs
E)total population minus the number of employed workers

Question

Quizplus · Accepted Answer

The unemployment rate is defined as the fraction of the labor force that cannot find jobs but who are actively looking. Therefore, choice C is the correct answer. A is incorrect because it includes the total population in the denominator instead of the labor force. B is incorrect because it includes people who are not looking for jobs in the numerator. D is incorrect because it includes the total population in the numerator. E is incorrect because it subtracts employed workers from the total population, rather than dividing the number of unemployed by the labor force.

The Unemployment Rate Is Defined as