Part-Time Workers Are Counted As

question 169

Multiple Choice

Part-time workers are counted as:

• A)unemployed and therefore the official unemployment rate tends to overstate the level of unemployment.
• B)unemployed and therefore the official unemployment rate tends to understate the level of unemployment.
• C)fully employed and therefore the official unemployment rate tends to overstate the level of unemployment.
• D)fully employed and therefore the official unemployment rate tends to understate the level of unemployment.

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Definitions:

Direct Material Cost

The expense of basic materials and parts directly utilized in manufacturing a product.

Period Cost

Costs that are not directly tied to the production process and are expensed in the period in which they are incurred, such as selling, general, and administrative expenses.

Opportunity Cost

The cost of forgone alternatives when one option is chosen over another.

Administrative Expense

Costs related to the general operation and administration of a business, including salaries of executive personnel, office supplies, and utilities.