Question : The unemployment rate is calculated by dividing the number of unemployed individuals by:
Option 1: The total population
Option 2: The labor force
Option 3: The working-age population
Option 4: The employed population
Correct Answer: The labor force
Solution : The correct answer is (b) The labor force
The unemployment rate is calculated by dividing the number of unemployed individuals by the labor force and multiplying the result by 100 to express it as a percentage.
The labor force consists of individuals who are either employed or actively seeking employment. It includes both employed individuals and those who are unemployed but actively looking for work.
The unemployment rate is a widely tracked and reported economic indicator that helps policymakers, economists, and researchers monitor and analyze unemployment trends, evaluate the effectiveness of employment policies, and make informed decisions regarding labor market interventions.
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