Frictional Unemployment Comes About Because of

question 271

Multiple Choice

Frictional unemployment comes about because of

• A) friction between labor and management.
• B) a mismatch between skills and available jobs.
• C) normal labor market turnover.
• D) a general economic slowdown.

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Definitions:

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales activity.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Machine Hours

A measure of production time, calculated as the total hours that machinery is operated over a specific period.

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating the contribution of sales to covering fixed expenses.