Which of the following best describes the labor force in the context of factors of production?

• A. The number of people currently unemployed
• B. The total population of a country
• C. The sum of all physical capital used in production
• D. The total number of people employed or actively seeking employment

Answer: (D)

Verified step by step guidance

1. Understand the concept of 'labor force' in microeconomics, which refers to the segment of the population that is either employed or actively seeking employment.
2. Recognize that the labor force excludes people who are not working and not looking for work, such as retirees, students, or discouraged workers.
3. Differentiate the labor force from other related terms: 'unemployed' refers only to those without jobs but seeking work, while 'total population' includes everyone regardless of employment status.
4. Note that physical capital refers to man-made goods used in production (like machinery), which is distinct from labor as a factor of production.
5. Conclude that the labor force is best described as the total number of people employed or actively seeking employment, encompassing both employed and unemployed job seekers.