Which of the Following Statements Regarding the Types of Unemployment

question 8

Multiple Choice

Which of the following statements regarding the types of unemployment is TRUE?

• A) Frictional unemployment is generally short-term, whereas structural unemployment is often long-term.
• B) Cyclical unemployment is due to expansions in the business cycle.
• C) Frictional unemployment is brought about by changes in technology.
• D) Structural unemployment is the result of normal labor turnover.

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Definitions:

Temporary Accounts

Accounts used to record transactions for only a single accounting period, which are then reset or closed at the period's end, such as revenues, expenses, and dividends.

Supplies

Items used in the operation of a business that are not directly related to the production of goods or services, such as office supplies.

Prepaid Expenses

Payments made in advance for goods or services that will be received in the future.

Retained Earnings

The portion of a company's profits that is not distributed to shareholders as dividends but is instead reinvested in the business or held as a reserve.