A Friend Wants to Learn How a Nation's Unemployment Rate

question 331

Multiple Choice

A friend wants to learn how a nation's unemployment rate is calculated and how it changes over time. He asks you which economics course to take and you advise him to enroll in

• A) macroeconomics.
• B) microeconomics.
• C) either micro- or macroeconomics. They both concentrate equally on those issues.
• D) political science because economics doesn't address those topics in its courses.

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Definitions:

Output

The cumulative sum of products and services generated by an economy.

Average Fixed Cost

The set expenses associated with production (not influenced by production scale) distributed over the number of items produced.

Marginal Cost

The increase in total production costs resulting from producing one additional unit of a product or service.

Variable Cost

Charges that adjust according to the volume of goods produced or services provided.