How Is the Unemployment Rate Calculated

question 28

Multiple Choice

How is the unemployment rate calculated?

• A)By dividing the number of unemployed people by the number of working individuals, and multiplying by 100.
• B)By dividing the number of unemployed people by the sum of the number of working people plus unemployed people, and multiplying by 100.
• C)By dividing the number of unemployed people by the number in the working-age population, and multiplying by 100.
• D)By dividing the number of unemployed people by the number of people in the labour force, and dividing by 100.

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Definitions:

Fairly Priced

A term used to denote that an asset's market price is considered reasonable based on its earnings and growth prospects.

Security Market Line

A graphical representation in the Capital Asset Pricing Model (CAPM) showing the relationship between the expected return of investments and their market risk.

Beta

A measure of a stock's volatility in relation to the overall market, indicating the stock's risk profile.