Which Example Illustrates Cyclical Unemployment

question 99

Multiple Choice

Which example illustrates cyclical unemployment?

• A) An autoworker is laid off because a recession has caused a decline in sales.
• B) A geologist is permanently laid off from an oil company because of a technological advance.
• C) A worker at a fast-food restaurant quits work and attends university.
• D) A real estate agent leaves a job in Montreal and searches for a similar,higher paying job in Toronto.

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Definitions:

Net Income

The total profit or loss of a company after all revenues, expenses, and taxes have been accounted for.

Owner's Equity

Owner's equity represents the owner's claim to the assets of a business, calculated as the business's total assets minus its total liabilities.

Salvage Value

is the estimated residual value of an asset at the end of its useful life.

Depreciation Expense

The allocated amount of an asset's cost expensed over its useful life to account for wear and tear, obsolescence, or decline in value.