Which of the Following Statements Is True of the Unemployment

question 4

Multiple Choice

Which of the following statements is true of the unemployment rate in an economy?

• A) During periods of expansion, the unemployment rate in an economy increases.
• B) During periods of contraction, the unemployment rate in an economy decreases.
• C) The unemployment rate in most of the developed nations of the world is 0 percent.
• D) The rate of unemployment is positive in any well-functioning economy.

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Definitions:

Depreciation Expense

The allocated amount of the cost of a tangible or physical asset over its useful life, reflecting the asset’s consumption, wear and tear, or obsolescence.

Benefit The Company

Actions or strategies that enhance the performance, profitability, or competitive advantage of a company.

Cost of Equipment

The original value of equipment, including purchase price and any other expenses required to get the equipment ready for its intended use.

Expensed

Expensed is the recognition of a cost as an expense on the income statement in the period in which it is incurred, rather than capitalizing it as part of an asset.