📚 Learning Guide
Calculating Unemployment Rate
easy

If the unemployment rate in Zeta is rising, which of the following is the most likely underlying cause?

Master this concept with our detailed explanation and step-by-step learning approach

Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

More people are leaving the workforce voluntarily.

B

The economy is experiencing a recession, leading to job losses.

C

The population of Zeta is decreasing.

D

Employers are hiring more workers than ever.

Understanding the Answer

Let's break down why this is correct

Answer

If the unemployment rate in Zeta is rising, one likely reason could be that the economy is slowing down. When businesses earn less money, they may need to cut costs, which often means laying off workers. For example, if a factory produces fewer goods because of decreased demand, it might have to let go some employees, leading to higher unemployment. Additionally, if new companies are not starting up or existing businesses are closing, there are fewer job opportunities available. This combination of factors can lead to more people being out of work, causing the unemployment rate to increase.

Detailed Explanation

When the economy is in a recession, businesses often lose money. Other options are incorrect because Some might think that if people leave jobs on their own, it raises unemployment; It's easy to think that a smaller population means fewer jobs.

Key Concepts

Unemployment Rate
Economic Health
Labor Force Participation
Topic

Calculating Unemployment Rate

Difficulty

easy level question

Cognitive Level

understand

Ready to Master More Topics?

Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.