Why is unemployment rate treated differently from only number of unemployed persons?
Answer and explanation
Correct answer: Because it shows unemployment as a proportion of the labour force
The unemployment rate standardises the number of unemployed people by dividing it by the labour force and multiplying by 100: unemployment rate = unemployed persons ÷ labour force × 100. This makes comparisons between regions or countries of different sizes more meaningful. The absolute number is still useful, but it does not show the relevant labour-force proportion. Hence, A is correct.
Frequently asked questions
What is the correct answer to this question?
Because it shows unemployment as a proportion of the labour force
Why is this the correct answer?
The unemployment rate standardises the number of unemployed people by dividing it by the labour force and multiplying by 100: unemployment rate = unemployed persons ÷ labour force × 100. This makes comparisons between regions or countries of different sizes more meaningful. The absolute number is still useful, but it does not show the relevant labour-force proportion. Hence, A is correct.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.
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