Suppose the Country of Tiny Town Experienced Frictional Unemployment

question 117

Multiple Choice

Suppose the country of Tiny Town experienced frictional unemployment. This frictional unemployment would

• A) definitely signal that the country is in a recession.
• B) be considered a natural occurrence in a growing economy.
• C) signal that there are more job leavers than job losers.
• D) signal that the number of discouraged workers is growing.

---

Definitions:

Securities & Exchange Commission

A federal agency responsible for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges.

External Audit

An external audit is conducted by an independent firm or individual to examine an organization's financial records and operations to ensure the accuracy and integrity of its financial statements.

Internal Control

A process designed to ensure the reliability of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Significant Accounting Policies

These are the specific principles, bases, conventions, rules, and practices applied by an entity in preparing and presenting financial statements.