During a Recession,a Number of Workers Have Their Hours Reduced

question 37

Multiple Choice

During a recession,a number of workers have their hours reduced by their employers.All else the same,the unemployment rate will ________ and the labor force participation rate will ________.

• A) decrease; increase
• B) increase; not change
• C) increase; increase
• D) not change; not change
• E) decrease; not change

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Definitions:

Return on Investment

A measure of the profitability or efficiency of an investment, calculated as the net profit from the investment divided by its cost.

Residual Income

Operating income that exceeds a set minimum return on operating assets, used as a measure of the profitability and performance of a business unit.

Division

A segment within an organization that focuses on specific products, services, territories, or customers, usually with its own set of management and financial goals.

Division's Margin

The profit margin measured at the divisional level, reflecting the division's ability to generate profit from its revenues.