An INCREASE in the Number of Discouraged Workers in the Economy

question 138

Multiple Choice

An INCREASE in the number of discouraged workers in the economy tends to:

• A) raise the official unemployment rate.
• B) lower the official unemployment rate.
• C) lower the number of people who are frictionally unemployed.
• D) increase the number of people who are structurally unemployed.

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Definitions:

FIFO Method

An inventory valuation technique where the first items placed in inventory are the first ones sold, standing for "First In, First Out."

Equivalent Unit

A concept in cost accounting used to allocate costs to partially completed units of product, treating them as an equivalent of a proportionate number of fully completed units.

Direct Materials

Raw materials directly used in the production of a product, easily traceable to the finished product.

Weighted Average Method

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