Question : The percentage of unemployed people in the labor force is called:
Option 1: Labor participation rate
Option 2: Unemployment rate
Option 3: Employment elasticity
Option 4: Job vacancy rate
Correct Answer: Unemployment rate
Solution : The correct answer is (b) Unemployment rate.
The unemployment rate is a measure of the percentage of unemployed individuals in the labor force. It is calculated by dividing the number of unemployed people by the total number of people in the labor force, and then multiplying by 100 to express it as a percentage.
The unemployment rate is an important economic indicator that provides insights into the health of the job market. It reflects the proportion of people who are actively seeking employment but are unable to find a job. A high unemployment rate often indicates economic downturn or recession, while a low unemployment rate suggests a healthy job market and potential labor shortages.
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