A Cutback in the Space Program Due to a Slow

question 203

Multiple Choice

A cutback in the space program due to a slow economy causes an increase in unemployment among aeronautical engineers. This is an example of

• A) cyclical unemployment.
• B) frictional unemployment.
• C) seasonal unemployment.
• D) structural unemployment.

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Definitions:

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers or clients for goods or services delivered but not yet paid for.

Credit Sales

Sales where payment is not made immediately by the buyer, but under terms and conditions agreed upon by the seller and the buyer.

Factor

An element contributing to a particular result or situation.

Cash Cycle

The period between the outlay of cash for goods and services and the cash recovery from sales.