Cyclical Unemployment Can Turn into Structural Unemployment If

question 85

Multiple Choice

Cyclical unemployment can turn into structural unemployment if:

• A) workers remain on unemployment benefits for too long.
• B) a recession lasts longer than a year.
• C) the government extends the unemployment benefits.
• D) the economy develops stagflation.

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Definitions:

Marginal Cost

The increase in total cost that arises from an increase in production by one additional unit.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the average cost of each unit of output when only variable costs are considered.

Cost-Minimizing Firm

A business entity that seeks to achieve production at the lowest possible cost.

Production Function

A mathematical representation that identifies the relationship between input resources and the output of goods or services for a business or economy.