In the United States Over the Past 40 Years,the

question 3

Multiple Choice

In the United States over the past 40 years,the

• A) labor force participation rate has remained relatively constant and the unemployment rate has trended upwards.
• B) both the unemployment rate and real GDP have tended to increase.
• C) labor force participation rate has fallen and real GDP has increased.
• D) unemployment rate has fluctuated and the labor force participation rate has risen.

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Definitions:

Cost Of Labor

The total cost incurred by employers to compensate employees, including wages, benefits, and taxes associated with employing labor.

Total Cost

The sum of all costs incurred by a business in producing a certain level of output, including both fixed and variable costs.

Cost Of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.

Cost Of Labor

Refers to the total amount spent by employers on wages, benefits, and payroll taxes for their employees.