The labor force is defined as:

• A. The total population.
• B. The number of employed only.
• C. The sum of employed and unemployed people who are actively seeking work.
• D. People aged 16 and over who are not in the labor force.

Answer: (C)

The key idea is who is counted as part of the labor force: it includes everyone who is either working or actively looking for work. That means people with jobs plus those who are unemployed but are actively seeking employment and are available to work. It excludes individuals who aren’t seeking work at all, such as students, retirees, homemakers, or those who have stopped looking for a job.

So the labor force is the sum of employed and unemployed people who are actively seeking work. The total population isn’t the same because it includes people not looking for work; counting only the employed misses those who want a job but don’t currently have one; and those not seeking work aren’t part of the labor force.