Workers at a Car-Manufacturing Plant Are Replaced by Automated Machinery

question 56

Multiple Choice

Workers at a car-manufacturing plant are replaced by automated machinery. What type of unemployment best describes the workers' situation?

• A)Cyclical unemployment
• B)Full unemployment
• C)Structural unemployment
• D)Frictional unemployment

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Definitions:

Variable Inspection Cost

The cost associated with the examination of products or processes that varies with the level of production or activity.

Machine-Hours

A measure of machine use or production time calculated in hours.

Relevant Range

This is the range of activity within which assumptions about variable and fixed cost behavior are valid.

Differential Cost

The cost difference between two alternative decisions.