Which Example Illustrates Cyclical Unemployment

question 68

Multiple Choice

Which example illustrates cyclical unemployment?

• A) An autoworker is laid off because a recession has caused a decline in sales.
• B) A geologist is permanently laid off from an oil company because of a technological advance.
• C) A worker at a fast-food restaurant quits work and attends college.
• D) A real estate agent leaves a job in Texas and searches for a similar, higher-paying job in California.

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Definitions:

External Users

Refers to individuals or entities outside of a company who use its financial information, such as investors, creditors, and regulatory agencies.

Accounting Standards

The rules and guidelines set by regulatory bodies that govern the preparation and presentation of financial statements.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting that is adopted by organizations to ensure consistency and transparency in financial statements.

Traditional Accounting Conventions

Established principles and practices that guide the preparation and presentation of financial statements.