Which of the Following Is Not a Cost of Unemployment

question 121

Multiple Choice

Which of the following is not a cost of unemployment?

• A)Unemployed individuals suffer a loss of income.
• B)Unemployed individuals are more likely to have emotional or psychological problems.
• C)Unemployed individuals can lose their job skills over time.
• D)Unemployment causes production to decrease from what it could be.
• E)The opportunity cost of unemployment is a higher inflation rate.

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Definitions:

Variable Costs

Expenses that change in proportion to the level of activity or production volume.

Static Budget

A budget that does not change or adapt over time, based on the assumption of a fixed level of activity.

Activity Index

The activity that causes changes in the behavior of costs.

Variable Costs

Costs that vary directly with the level of production or service output, such as materials and labor.