Chapter 2, Problem 2MCQ

To determine

The question requires us to define the labor force.

Explanation of Solution

The labor force is the sum of the employed and unemployed population in a workforce.

The people are considered employed who are already working and getting some compensation for their working hours, while the people are considered unemployed who are not working now, but actively looking for a job.

Labor force = Employed people + Unemployed people.

Therefore, the labor force is made up of everyone employed and unemployed.