Which of the Following Is an Example of Cyclical Unemployment

question 45

Multiple Choice

Which of the following is an example of cyclical unemployment?

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

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Definitions:

Unearned Revenue

Prepayment for goods or services which have not yet been delivered or performed, recognized as a liability on the balance sheet until the goods or services are delivered.

Sales Revenue

The sum of revenue from the sale of products or services that are fundamental to a company's main business activities.

Accounting Equation

The accounting equation is a fundamental principle of financial accounting that states assets equal liabilities plus equity.

Stockholders' Equity

The residual interest in the assets of a company after deducting liabilities, essentially representing ownership interest.