Two Results of Underemployment Are That the U3 Unemployment Rate

question 80

Multiple Choice

Two results of underemployment are that the U3 unemployment rate _____ the unfulfilled desire to work and that national output is:

• A) overestimates; higher than expected.
• B) overestimates; lower than it could be.
• C) underestimates; lower than it could be.
• D) underestimates; higher than it could be.

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Definitions:

Equivalent Annual Cost

A cost calculation method that is used to compare the cost effectiveness of different investments or projects with different lifespans.

Tax Shield

A deduction allowed by the tax laws to reduce taxable income, thus lowering the overall taxes owed by an individual or an organization.

Mutually Exclusive

Two events that cannot happen at the same time, requiring a choice to be made between them.

Legal Fees

Charges for services provided by lawyers or law firms.