A Good Example of an Outcome That Could Lead to "Hysteresis

question 95

Multiple Choice

A good example of an outcome that could lead to "hysteresis" in the labour market is

• A)new entrants to the labour market have a high rate of unemployment due to technological change.
• B)new entrants to the labour market have difficulty finding jobs,and as a result have a higher rate of unemployment throughout their working lives.
• C)unemployment is generated by an increase in the minimum wage.
• D)a negative supply shock persists.
• E)a negative demand shock persists.

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Definitions:

Activity

A measure of actions or operations within a process, often used to allocate costs in activity-based costing.

Per Unit

A term referring to the cost, price, or quantity related to one unit of a product or service.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes towards covering fixed costs and generating profit.

Variable Production Expense

Costs that vary directly with the level of production, including raw materials and direct labor costs.