Using the Definition of Unemployment, Which of the Following Individuals

question 69

Multiple Choice

Using the definition of unemployment, which of the following individuals would be unemployed?

• A) A full-time student quits school, enters the labor market for the first time, and searches for employment.
• B) Because of a reduction in the military budget, your next door neighbor loses her job in a plant where nuclear warheads are made and must look for a new job.
• C) Because of the increased level of automobile imports, an employee of General Motors is laid off but expects to be called back to work soon.
• D) All of these individuals are unemployed.

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Definitions:

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

MC

Marginal Cost, the change in total production cost that comes from making or producing one additional unit.

AFC

AFC, or Average Fixed Cost, is the total fixed costs of production divided by the quantity of output produced.

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.