Which of the Following Explains the Cause of the Change

question 23

Multiple Choice

Which of the following explains the cause of the change in the unemployment rate at the end of a recession?

• A)Firms are hesitant to rehire laid off workers as they continue to operate below capacity.
• B)Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
• C)Discouraged workers return to the labor force,and this makes the unemployment rate fall.
• D)Discouraged workers leave the labor force,and this makes the unemployment rate rise.

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Definitions:

Production Costs

The total expenses incurred in the process of creating goods or services, comprising direct materials, direct labor, and overheads.

Competitive Industries

Industries characterized by a high degree of competition where no single firm or entity controls a significant portion of the market.

Total Benefits

The complete gains or advantages, in terms of money, comfort, or welfare, obtained from a particular action or investment.