Counting Discouraged Searchers as Unemployed Would

question 11

Multiple Choice

Counting discouraged searchers as unemployed would

• A)not change the measured unemployment rate.
• B)lower the measured unemployment rate.
• C)raise the natural unemployment rate.
• D)raise the full employment rate.
• E)raise the measured unemployment rate.

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Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Fixed Costs

Costs that do not change in total despite changes in the volume of goods or services produced or sold.

Margin of Safety

The difference between actual or projected sales and the break-even point. It measures the amount by which sales can decline before a business incurs a loss.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which contributes towards covering fixed costs and then generating profit.