The Type of Unemployment Created by the Normal Rate of Reentry

question 215

Multiple Choice

The type of unemployment created by the normal rate of reentry and entry into the labor force is

• A) structural unemployment.
• B) frictional unemployment.
• C) cyclical unemployment.
• D) seasonal unemployment.

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Definitions:

Linear Marginal Cost

A situation where the additional cost of producing one more unit of output is constant, regardless of the quantity produced.

Sunk Costs

Expenses that have already been incurred and cannot be recovered or refunded.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.

Explicit Costs

Input costs that require an outlay of money by the firm