Which of the Following Statements Is Correct

question 67

Multiple Choice

Which of the following statements is correct?

• A)Technological advances always lead to the permanent displacement of workers.
• B)The typical unemployment compensation in the United States is one's half salary for 26 weeks.
• C)Unemployment compensation increases the opportunity cost of being unemployed to a worker.
• D)Unemployment compensation discourages longer job searches, which leads to a mismatch between jobs and employees.
• E)If there is a balance between demand and supply in the labor market, frictional employment must equal zero.

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Definitions:

Earnings Per Share

A company's profit divided by the number of outstanding shares of its common stock.

Interest Expense

The cost incurred by an entity for borrowed funds, typically reported on the income statement within financial reporting.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term liabilities with assets due within the same period.

Marketable Securities

Financial instruments and assets that can easily be converted into cash, often traded on public markets.