The unemployment rate is equal to
A)the number unemployed divided by the labor force.
B)the number unemployed divided by the population.
C)the number unemployed divided by the number employed.
D)the labor force divided by the population.

Question

Quizplus · Accepted Answer

The unemployment rate is calculated as the number of unemployed individuals divided by the labor force. The labor force includes both employed and unemployed individuals who are able and willing to work. Option B is incorrect as the population includes individuals who may not be able or willing to work, such as children, retirees, and students. Option C is incorrect as it divides the number of unemployed by the number employed, which would not give an accurate representation of the unemployment rate. Option D is incorrect as it divides the labor force by the population, which also would not give an accurate representation of the unemployment rate.

The Unemployment Rate Is Equal to