In 2008 as the Recession Worsened, Suppose Discouraged Workers Were

question 12

Multiple Choice

In 2008 as the recession worsened, suppose discouraged workers were included as part of the unemployment rate. Which of the following would have occurred?

• A)The unemployment rate would have decreased.
• B)The unemployment rate would not have changed.
• C)The labor force participation rate would have decreased.
• D)The unemployment rate would have increased.
• E)The labor force participation rate would not have changed.

---

Definitions:

Variable Manufacturing Overhead

Costs of manufacturing overhead that vary directly with the level of production, such as utilities used in the production process.

Product Costs

Costs directly associated with the production of goods, including materials, labor, and manufacturing overhead.

Absorption Costing

A costing method that includes all manufacturing costs — direct materials, direct labor, and both variable and fixed manufacturing overhead — in the cost of a product.

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.