Frictional Unemployment Is Thought to Explain Relatively

question 6

Multiple Choice

Frictional unemployment is thought to explain relatively

• A)short spells of unemployment, as is structural unemployment.
• B)long spells of unemployment, as is structural unemployment.
• C)short spells of unemployment, while structural unemployment is thought to explain relatively long spells of unemployment.
• D)long spells of unemployment, while structural unemployment is thought to explain relatively short spells of unemployment.

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Definitions:

High-Low Method

An accounting technique used to estimate variable and fixed costs associated with a business activity by analyzing the highest and lowest levels of activity.

Scatter Diagram

A graphical representation used to show the relationship between two variables, often used in statistics and quality control to identify potential correlations.

Degree of Operating Leverage (DOL)

A measure of how much a company's operating income will change in response to a change in sales, indicating the company's sensitivity to changes in business volume.

Total Contribution Margin

The difference between sales revenue and variable costs of production, indicating how much revenue contributes toward covering fixed costs and generating profit.