The unemployment rate is defined as the number _____ divided by the _____.
A) unemployed; population
B) unemployed; number working
C) unemployed; number in the labor force
D) passively looking for a job; number in the labor force

Question

Quizplus · Accepted Answer

The unemployment rate is the percentage of the labor force that is unemployed, which is why it is defined as the number of unemployed people divided by the number in the labor force. Choice A is incorrect because the population includes people who are not in the labor force (e.g. children, retirees) and therefore should not be included in the calculation of the unemployment rate. Choice B is incorrect because the number of people working does not tell us anything about the unemployment rate, as it only considers those who are employed and not those who are looking for work. Choice D is incorrect because the unemployment rate includes both actively and passively looking for a job, not just those who are actively seeking employment.

The Unemployment Rate Is Defined as the Number _____ Divided