Which of the Following Is Not an Economic Cost of Unemployment

question 64

Multiple Choice

Which of the following is not an economic cost of unemployment?

• A) an increase in wages for those workers who are employed as there are fewer people in the labour force
• B) loss of tax revenue to the government
• C) lower profit levels for firms than if there was full employment
• D) loss of income to the individual who becomes unemployed

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Definitions:

Social Loafing

Social Loafing is the phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or expectations.

Deindividuation

A psychological state where an individual loses self-awareness and sense of individuality, often leading to disinhibited and impulsive behavior, typically in group settings.

Foot-In-The-Door

A persuasion technique where a small request is made first to gain compliance, followed by a larger request, increasing the likelihood of agreement.