Standard Definition of Unemployment

Steps:

• Recall the economic definition: a person is unemployed if they lack a paid job but are available and actively seeking work.
• Identify core criteria: no current employment, readiness to start work immediately, and willingness to accept prevailing market wages.
• Match choices to criteria: all options confirm no paid job, but vary on preparedness and wage acceptance.
• Select the option fulfilling all three: no job, prepared to work, and accepts current wage.

Why D is correct:

• It aligns with the Bureau of Labor Statistics definition, requiring joblessness, availability for work, and active job search at market rates.

Why the others are wrong:

• A: Lacks preparedness to work, so the worker is not actively available.
• B: Lacks both preparedness and wage acceptance, failing availability and search criteria.
• C: Rejects current wage, implying unwillingness to take available jobs at market rates.

Final answer: D