Olivia Is a Part-Time Worker at a Jam-Producing Company in Her

question 144

Multiple Choice

Olivia is a part-time worker at a jam-producing company in her village. Her job entails picking and cleaning grapefruits. Because grapefruits grow only in winter, Olivia is unemployed for most part of the year. In the given scenario, Olivia's unemployment exemplifies _____.

• A) seasonal unemployment
• B) frictional unemployment
• C) classical unemployment
• D) cyclical unemployment

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Definitions:

Cost of Capital

The compulsory return rate businesses need on investment plans to sustain their market position and attract monetary contributions.

NPV

Net Present Value, a calculation used to determine the present value of an investment's expected future cash flows compared to its initial cost.

Internal Rate

Refers to the internal rate of return (IRR), a financial metric used to estimate the profitability of potential investments.

Cash Flows

The entire sum of funds moving into and exiting a business, particularly impacting its liquidity and comprehensive financial well-being.