An Economist Claims That Changes in Information Technology and Unemployment

question 23

Multiple Choice

An economist claims that changes in information technology and unemployment insurance have reduced unemployment. Which of these changes affect frictional unemployment?

• A)Both the changes in information technology and unemployment insurance
• B)Only the changes in information technology
• C)Only the changes in unemployment insurance
• D)Neither the changes in information technology nor the changes in unemployment insurance

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Definitions:

Cost Of Goods Sold

The direct costs associated with producing goods sold by a company, including materials and labor, affecting net income and profit margins.

Inventoriable Costs

Costs that are directly associated with the production of goods and are initially recorded as inventory, to be expensed as cost of goods sold when the goods are sold.

Rising Prices

A scenario in which the overall price level of goods and services within an economy rises over a certain period.

Ending Inventory

Ending Inventory refers to the total value of goods available for sale at the end of an accounting period, calculated as the sum of beginning inventory plus purchases minus cost of goods sold.