The unemployment rate equals
A) $\frac { \text { labour force } } { \text { number unemployed } }$.
B) $\frac { \text { number unemployed } } { \text { number employed - number unemployed } }$.
C) $\frac { \text { number unemployed } } { \text { labour force } }$.
D) $\frac { \text { labour force } } { \text { total working age population } }$.
E) $\frac { \text { number unemployed } } { \text { total working age population } }$.

Question

Quizplus · Accepted Answer

The unemployment rate is defined as the number of unemployed individuals in the labour force divided by the total labour force. Therefore, the best choice is C, which is the only option that matches this definition. Option A is incorrect because it divides the labour force by the number of unemployed individuals, which is the inverse of the definition of the unemployment rate. Option B is incorrect because it divides the number of unemployed individuals by the difference between the number employed and the number unemployed, which is not a valid calculation of the unemployment rate. Option D is incorrect because it divides the labour force by the total working-age population, which does not take into account individuals who are not in the labour force, such as students or retirees. Option E is also incorrect because it divides the number of unemployed individuals by the total working-age population, which does not take into account individuals who are employed or not in the labour force.

The Unemployment Rate Equals A) labour force number unemployed \frac { \text { labour force } } { \text { number unemployed } } number unemployed labour force ​

The Unemployment Rate Equals
A) $\frac { \text { labour force } } { \text { number unemployed } }$