Suppose U = the number of adults who are unemployed; E = the number of adults who are employed; and NLF = the number of adults not in the labor force.Which expression would equal the labor force participation rate?
A)U/(U + E)
B)E/(U + E)
C)U/(U + E + NLF)
D)E/(U + E + NLF)
E)(U + E)/(U + E + NLF)

Question

Quizplus · Accepted Answer

The labor force participation rate is the proportion of the working-age population that is either employed or actively seeking employment. This means that both employed and unemployed individuals are considered to be part of the labor force. Therefore, the denominator should include both E and U, as well as NLF, which represents those who are not in the labor force. The numerator should only include employed and unemployed individuals (E + U). The expression that reflects this is (U + E)/(U + E + NLF).

Suppose U = the Number of Adults Who Are Unemployed;