The Unemployment Compensation Program

question 49

Multiple Choice

The unemployment compensation program:

• A) makes recessions more severe.
• B) makes recession less severe.
• C) makes recessions more severe and inflationary episodes less severe.
• D) makes recessions less severe and inflationary episodes more severe.

---

Definitions:

Marginal Cost

The increment in overall expenses due to the output of one more unit of a product or service.

Marginal Revenue

The augmented income received from selling an extra unit of a good or service.

Total Revenue Curve

The total revenue curve graphically represents the relationship between total revenue gained by a business and the quantity of a product sold, showing how revenue changes as sales volume varies.

Slope

A measure of the steepness or inclination of a line, representing the rate at which variables change relative to each other.