Which of the Following Best Explains Why a Certain Amount

question 76

Multiple Choice

Which of the following best explains why a certain amount of unemployment may be socially desirable?

• A)A pool of unemployed workers drives down the average wage in the economy, and keeps workers from becoming greedy.
• B)A pool of unemployed workers provides an incentive to those employed to remain productive.
• C)Unemployed workers have the time to upgrade their skills and training.
• D)When some workers become unemployed it provides a chance to others in the labour force to become employed.
• E)The time spent unemployed by the worker is valuable for finding the most appropriate match with firms.

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Definitions:

Risk-Free Return

The return on an investment with no loss of principal, often associated with government bonds.

Geometric Average Return

The average rate of return on an investment per year, compounded annually, representing the compounded growth rate over time.

Yearly Return

The annual profit or loss generated by an investment, usually expressed as a percentage of the investment's initial value.

Information Ratio Measure

A performance metric used to evaluate the skill of an investment manager by comparing their returns relative to the risk taken.