Other Things Equal, If a Recession Gets Worse, the Number

question 263

Multiple Choice

Other things equal, if a recession gets worse, the number of discouraged workers _____, and the number of those in the labor force _____.

• A) increases; decreases
• B) decreases; decreases
• C) increases; increases
• D) decreases; increases

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Definitions:

External Failure Cost

Costs incurred when a defective product or service is discovered after delivery to the customer, including returns, repairs, and lost sales.

Prevention Costs

Costs incurred to prevent defective units before they are produced. For example, reengineering products or production processes.

Appraisal Costs

Costs associated with the evaluation and inspection of products or services to ensure they meet quality standards.

Internal Failure Costs

Costs incurred when a defect is discovered before being received by a customer.