Which of the Following Is an Economic Cost of Rising

question 34

Multiple Choice

Which of the following is an economic cost of rising unemployment rates?

• A)loss of GDP
• B)an inward shift in the production possibility frontier
• C)a fall in the amount of unemployment benefits paid by the government
• D)an increase in income levels, as people who lose their jobs move onto the unemployment benefits

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Definitions:

Statement of Comprehensive Income

A financial statement that shows all changes in equity during a period except those resulting from investments by and distributions to equity investors.

Voting Shares

Shares that grant the holder the right to vote on company matters, such as electing the board of directors or making decisions affecting the company's policies.

Shareholders' Equity

The residual interest in the assets of an entity after deducting liabilities, essentially representing the owners' equity in a corporation.

Equity Method

An accounting technique used to record investments in subsidiary companies, where the investment's value is adjusted over time to reflect the investor's share of the subsidiary's profits or losses.