What Is the Term for the Portion of Unemployment That

question 19

Multiple Choice

What is the term for the portion of unemployment that is attributable to an overall decline in the economy's business activity?

• A)frictional unemployment
• B)cyclical unemployment
• C)underemployment
• D)structural unemployment

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Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of goods or services a company produces.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.

Average Fixed Cost

Is the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.