Structural Unemployment Results When

question 311

Multiple Choice

Structural unemployment results when

• A) a reduction in consumer income reduces demand for products.
• B) individuals enter the labor market in June following graduation.
• C) workers face layoffs following a decrease in economic activity.
• D) the introduction of a product substitute leads to a large decline in the market demand for a product so that workers specializing in the production of that product find themselves out of work.

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Definitions:

Fixed Period Cost

Describes expenses that do not fluctuate with the level of production or sales within a certain time frame, such as rent and salaries.

Annual Subscription

A payment model where customers pay a recurring fee once per year for access to a product or service.

Computer Magazine

A publication focusing on computers, technology trends, software and hardware reviews.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred.