Which of the Following Is a Cost of Unemployment

question 32

Multiple Choice

Which of the following is a cost of unemployment?
I. output foregone
II. unemployment compensation that must be paid
III. rising inflation that erodes the value of money

• A) I, II, and III
• B) I and II
• C) I and III
• D) II and III

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Definitions:

Efficient Markets Hypothesis

The theory that all available information is already reflected in asset prices, implying that stocks always trade at their fair value, making it impossible to consistently achieve higher-than-average returns.

Efficient Markets Hypothesis

The theory that all available information is already reflected in stock prices, thus making it impossible to consistently achieve higher returns.

Return And Risk

Concepts in finance and investing that denote the potential profit or loss and the uncertainty associated with an investment.

Asset Bubble

A situation in financial markets where the price of an asset inflates to levels far beyond its intrinsic value, leading to an eventual crash.