Suppose the Official Rate of Unemployment Reported by Statistics Canada

question 44

Multiple Choice

Suppose the official rate of unemployment reported by Statistics Canada declines from one month to the next from 7.5% to 7.2%,but we also know that the stock of unemployed workers has not changed.How is this possible?

• A)The labour force has declined due to out-migration of working-age people.
• B)The labour force has grown as previously discouraged workers re-start their job-search process as unemployed individuals.
• C)Some individuals who were previously outside the labour force have joined the labour force and immediately found jobs.
• D)We have gone from a month with high seasonal unemployment to a month with low seasonal unemployment.
• E)We have gone from a month with low seasonal unemployment to a month with high seasonal unemployment.

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Definitions:

Conversion Costs

The sum of direct labor and manufacturing overhead costs, incurred to convert raw materials into finished goods.

Total Manufacturing Costs

This encompasses all the direct materials, direct labor, and factory overhead costs involved in producing goods.

Units Transferred Out

In cost accounting, it refers to the number of units moved from one production process to the next or to the finished goods inventory.

Ending Work In Process

This signifies the inventory of goods that are still in the process of being produced at the end of an accounting period.