What Types of Unemployment Will Still Exist When the Economy

question 4

Multiple Choice

What types of unemployment will still exist when the economy is at the natural rate of unemployment?

• A) none as there will be no unemployment
• B) frictional and structural unemployment only
• C) structural and cyclical unemployment only
• D) frictional, structural, and cyclical unemployment

---

Definitions:

Absorption Costing

Absorption costing is an accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Net Operating Income

A financial metric that calculates a company's income after operating expenses are deducted, but before interest and taxes.

Absorption Costing

A method of inventory costing in which all costs of production (both fixed and variable) are treated as product costs.

Gross Margin

Gross margin is the difference between revenue and the cost of goods sold, divided by revenue, expressed as a percentage. It measures how much a company earns taking into consideration the costs that it incurs for producing its products or services.