Suppose There Are 6 Million Unemployed Workers Actively Seeking a Job.After

question 27

Multiple Choice

Suppose there are 6 million unemployed workers actively seeking a job.After a period of time,1,500,000 of these workers become discouraged and no longer look for employment.Ceteris paribus,the unemployment rate will

• A)Decrease.
• B)Increase.
• C)Remain unchanged until the unemployed find a job.
• D)Increase initially but decrease when the phantom unemployed receive unemployment benefits.

---

Definitions:

Marginal Cost Curve

This curve illustrates the change in the total cost that arises when the quantity produced is incremented by one unit. It is the graphical representation of the marginal cost of production as the amount produced changes.

ATC

Average Total Cost, which is the total cost of production (including both fixed and variable costs) divided by the number of units produced.

AVC

stands for Average Variable Cost, which is the total variable cost divided by the quantity of output produced.

MC

Marginal Cost, the increase in total cost that arises from producing one additional unit of a good or service.