The rate of unemployment can be calculated by
A)simply dividing all unemployed persons by all employed persons.
B)subtracting those employed from the total labor force to find the number of unemployed and express this number as a percent of the total labor force.
C)subtract those unemployed from the total labor force and express this number as a percent of the total labor force.
D)dividing all unemployed by the population.

Question

Quizplus · Accepted Answer

The best way to calculate the rate of unemployment is to subtract those employed from the total labor force to find the number of unemployed and express this number as a percent of the total labor force. This is because the labor force includes both employed and unemployed individuals, and the rate of unemployment is calculated based on the proportion of unemployed individuals in the labor force. Dividing all unemployed by all employed or the population does not provide an accurate representation of the rate of unemployment in the labor force.

The Rate of Unemployment Can Be Calculated by