People Actively Looking for Work Who CANNOT Find Jobs Because

question 1

Multiple Choice

People actively looking for work who CANNOT find jobs because of an insufficiency of aggregate demand are examples of ________ unemployment.

• A) frictional
• B) structural
• C) cyclical
• D) inflationary
• E) residual

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered.

Incremental Cash Flow

The additional cash flow a company receives from undertaking a new project, after accounting for the expenses involved in the project.

Variable Costs

Costs that change in proportion to the level of production or sales activities, such as materials and labor.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.