Underemployment Occurs When

question 74

Multiple Choice

Underemployment occurs when:

• A)a firm hires fewer than the required number of workers to save costs.
• B)a firm hires workers who do not possess the required skills that the job demands.
• C)a worker is over qualified and possesses more skills than what his job demands.
• D)a firm hires more than the required number of workers.
• E)a worker is laid off from his or her job temporarily and has the chance of being hired again.

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Definitions:

Prices

The amount of money expected, required, or given in exchange for goods or services.

Marginal Rate

The rate of change in cost or benefit resulting from a particular increase in volume or activity.

Consumption

The use of goods and services by households, which is a primary component in calculating a country's gross domestic product (GDP).

Marginal Utilities

The additional satisfaction or utility gained from consuming one more unit of a good or service.