The Unemployment Rate Will Decrease When

question 375

Multiple Choice

The unemployment rate will decrease when

• A) the duration of unemployment increases.
• B) the average workweek falls from 40 to 39 hours.
• C) the age of the labor force increases.
• D) people get discouraged and quit looking for work.

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Definitions:

Absolute Advantage

The ability of a country, individual, company or region to produce a good or service at a lower cost per unit than the cost at which any other entity produces that good or service.

Comparative Advantage

The capacity of a nation, person, business, or area to generate a product or offer a service with a smaller opportunity cost compared to its rivals.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Alternative Goods

Products or services that can be used in place of each other, offering consumers choices based on price, preference, or availability.