Which of the Following Explains the Cause of the Change

question 235

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 on 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:

Direct Materials

The raw materials that are directly used in the manufacturing of a product, easily traceable to the finished product.

Equivalent Units Of Production

The number of production units that could have been completed within a given accounting period, given the resources consumed.

Average Cost Method

An inventory valuation method that calculates the cost of goods sold and ending inventory value based on the average cost of all similar items in inventory.

Direct Materials

Raw materials that can be directly traced to the production of goods in the manufacturing process.