Which of the Following About Unemployment Is True

question 22

Multiple Choice

Which of the following about unemployment is true?

• A) When a dynamic labor market is operating efficiently, mostly cyclical unemployment will be present.
• B) Some unemployment will be present even when a dynamic labor market is operating efficiently.
• C) When full employment is present, the rate of unemployment will be zero.
• D) When full employment is present, there will not be any frictional unemployment.
• E) When full employment is present, it will be impossible to sustain the current rate of output in the future.

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Definitions:

Rate of Return

A measure of the profitability or efficiency of an investment, expressed as a percentage of the original investment.

Variable Cost Concept

A principle in economics that refers to costs that vary directly with the level of production or service activity.

Rate of Return

A measurement of the gain or loss on an investment over a specific period, expressed as a percentage.

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed costs and generate profit.