Why Didn't Unemployment Rise During the 2000s Even Though the Economy

question 21

Multiple Choice

Why didn't unemployment rise during the 2000s even though the economy faced more and more globalization?

• A)Globalization meant higher exports and lower imports, which created jobs
• B)The government ran policies that created jobs in the non-tradable sector
• C)Firms hired workers because they lowered their reservation wages
• D)Limmigration policies meant immigrants took jobs Americans weren't willing to take

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Definitions:

Fixed Costs

Operating expenses that remain constant regardless of the business activity level, such as insurance or lease payments.

Contribution Margin

The selling price per unit minus the variable cost per unit, indicating how much each unit sold contributes to fixed costs and profit.

Selling Price

The price at which a product or service is sold to customers.

Break-Even Point

The point at which total costs equal total revenue, resulting in no profit or loss for the business.