Unemployment means that
A) at the going wage rate, there are people who want to work but cannot find work.
B) people are not willing to work at the going wage rate.
C) there are some people who will not work at the going wage rate.
D) there is excess demand in the labor market.

Question

Quizplus · Accepted Answer

Unemployment refers to the situation where there are people who are willing and able to work at the going wage rate but are unable to find work. Option A correctly captures this definition. Option B, C, and D do not capture the key feature of unemployment, which is the inability to find work despite being willing and able to work at the going wage rate.

Unemployment Means That