Question

The rate of unemployment occurring when the economy is a. at its potential output. b. higher than the full-employment rate of unemployment. c. found by dividing total unemployment by the size of the labor force. d. lower than the full-employment rate of unemployment.

Answer 1

Answer:

C. Found by dividing total unemployment by the size of the labor force.  

Explanation:

The rate of unemployment measures the unemployed people in an economy in relation to the total labor force. The labor force  is the total number of those who are employed and those who are unemployed. The labor force only comprise of those who are willing and able to work.

It is this labor force that is taken as the base in which rate of unemployment is measured.

                                                        Unemployed

The formula is given below:          ____________  X     100

                                                       Total Labor Force