Part-Time Workers Are Counted As

question 19

Multiple Choice

Part-time workers are counted as:

• A)unemployed and, therefore, the official unemployment rate can overstate the level of unemployment
• B)unemployed and, therefore, the official unemployment rate can understate the level of unemployment
• C)fully employed and, therefore, the official unemployment rate can overstate the level of unemployment
• D)fully employed and, therefore, the official unemployment rate can understate the level of unemployment
• E)only partly employed, and therefore the official unemployment rate accurately reflects the underlying unemployment rate

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Definitions:

Compromise Dividend Policy

A strategy for distributing earnings to shareholders that seeks to balance between retaining earnings for reinvestment and paying dividends.

NPV Projects

Projects that are evaluated based on the Net Present Value method, which calculates the present value of future cash flows minus the initial investment cost.

Debt/Equity Ratio

The ratio that highlights the proportional use of debt and shareholders' equity in asset financing for a company.

Stripped Common Shares

Common stock on which dividends and capital gains are repackaged and sold separately.