Why Are High Rates of Unemployment of Concern to Economists

question 82

Multiple Choice

Why are high rates of unemployment of concern to economists?

• A)Higher rates of unemployment generally lead to higher inflation rates.
• B)Environmental destruction is more prevalent when unemployment rates are high.
• C)There is lost output that could have been produced if the unemployed had been working.
• D)All of these options are reasons why economists are concerned about high unemployment rates.

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Definitions:

Direct Labour

The cost of wages for workers directly involved in the manufacture of products or the delivery of services.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as factory rent and salaries of permanent staff.

Variable Manufacturing Overhead

Variable manufacturing overhead includes all production costs that change with the level of production output and are not direct materials or direct labor, such as utilities for the manufacturing facility.

Direct Labour

The wages paid to workers directly involved in the production of goods or services, considered a variable cost.