Suppose One Worker,currently in the Labour Force,is Unemployed for One

question 106

Multiple Choice

Suppose one worker,currently in the labour force,is unemployed for one year.Which of the following statements is correct?

• A)This unemployed worker would no longer be included in the labour force after one year and the measured unemployment rate would decline.
• B)The output this worker could have produced and contributed to national output is lost forever.
• C)There is no effect on national output because the worker was not employed.
• D)There are personal costs to the individual worker from being unemployed but no costs to society at large.
• E)The cost to society of this unemployed worker is only the cost of the employment insurance payments from the government.

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