Which of the Following Statements About Featherbedding Is CORRECT

question 201

Multiple Choice

Which of the following statements about featherbedding is CORRECT?

• A) It may or may not increase the demand for labor.
• B) It may or may not increase wages.
• C) It forces a firm to hire more workers than it needs.
• D) all of the above

---

Definitions:

Unemployment Rate

The percentage of people in the labor force who are not currently employed but are seeking work.

Labor Force

The total number of people who are eligible and willing to work, including both employed and unemployed individuals.

Recovery Phase

A period in the economic cycle where economic activity picks up and grows, following a recession or slowdown.

Business Cycle

The fluctuation of economic activity over time, including periods of expansion, peak, recession, and recovery.