During a Recession, People Drop Out of the Labor Force

question 65

Multiple Choice

During a recession, people drop out of the labor force because they are unable to find a job. All else the same, this

• A) increases the official U-3 unemployment rate.
• B) decreases the official U-3 unemployment rate.
• C) does not change the official U-3 unemployment rate.
• D) increases the official U-3 unemployment rate and the labor force participation rate.

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Definitions:

Job Order Cost Accounting

A system used to assign manufacturing costs to an individual product or batches of products, typically in customized or non-repetitive manufacturing environments.

T Accounts

A visual representation used in accounting to depict the debit and credit sides of an account.

Manufacturing Overhead

All indirect costs related to the manufacturing process, including but not limited to, rent, utilities, and salaries of non-direct labor.

Direct Labor Incurred

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