Which of the Following Statements Concerning Gross Flows and Net

question 10

Multiple Choice

Which of the following statements concerning gross flows and net flows is true?

• A) Only gross flows are relevant for determining the unemployment rate
• B) If the net flow is zero, then the gross flow is zero
• C) Gross flows are typically smaller than net flows
• D) Net flows take account of workers moving in both directions between labour market states
• E) In a steady state, gross flows are equal to zero

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Definitions:

Double Diminishing-Balance

The double declining balance method is an accelerated depreciation technique that doubles the normal depreciation rate, reducing the value of an asset more quickly in its early years.

Constant Percentage

A fixed percentage rate applied in various financial calculations, such as depreciation or interest computation.

Double Diminishing-Balance

A method of accelerated depreciation that doubles the standard depreciation rate.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value due to wear and tear, age, or obsolescence.