Which of the following describes the ratio of the number of people classified as out of work to the total labor force?
A) The capacity utilization rate
B) The participation rate
C) The unemployment rate
D) The natural rate

Question

Quizplus · Accepted Answer

The ratio of the number of people classified as out of work to the total labor force is known as the unemployment rate. Option A refers to the percentage of installed production capacity that is being utilized, while option B refers to the percentage of the working-age population that is either employed or actively seeking employment. Option D refers to the rate of unemployment that prevails in the economy when it is operating at its potential output level.

Which of the Following Describes the Ratio of the Number