Which of the Following Will Most Likely Increase the Natural

question 2

Multiple Choice

Which of the following will most likely increase the natural rate of unemployment?

• A) a decrease in the minimum wage
• B) an increase in unemployment benefits
• C) an increase in the number of people who stop looking for a job
• D) an increase in the proportion of prime-age workers as a share of the labor force

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Definitions:

Opportunity Cost

The drawback of failing to select the next best possible choice during the decision-making process.

Free Meal

A complimentary food serving provided without charge, often as a promotional offering or as a benefit.

Fast-Food Restaurant

A type of restaurant that offers quick service, affordable prices, and food served in a packaged form for take-out or dine-in.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.