Which of the Following Scenarios Best Illustrates the Concept of Cyclical

question 42

Multiple Choice

Which of the following scenarios best illustrates the concept of cyclical unemployment?

• A)Grace loses her job because of new automated machinery.
• B)Sean quits his job to look for work that is more fun.
• C)Ellen quits looking for work because she doesn't think she can find a suitable job.
• D)Marian loses her job because of a recession.

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Definitions:

Average Fixed Cost

The fixed costs (costs that do not change with the level of output) of producing a good or service, divided by the quantity of output produced.

Total Cost

The entire cost of production, including both fixed and variable costs.

Average Total Cost

Average total cost is the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicative of the cost per unit at different levels of output.

Average Variable Cost

The total variable cost per unit of output, found by dividing total variable costs by the quantity of output produced.