If the Economy Is Operating with Full Employment, Which of the Following

question 148

Multiple Choice

If the economy is operating with full employment, which of the following is essentially eliminated?

• A)​frictional unemployment
• B)​structural unemployment
• C)​cyclical unemployment
• D)​all of the above

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Definitions:

Variable Cost

A cost that changes in proportion to the level of output or activity.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Marginal Cost

Marginal Cost is the increase or decrease in the total cost of production resulting from producing one additional unit of a product.

Variable Cost

Refers to expenses that change in proportion to the production output or activity level of a company.