Frictional Unemployment Is the Result of

question 189

Multiple Choice

Frictional unemployment is the result of

• A)a persistent mismatch between the skills and characteristics of workers and the requirements of the jobs.
• B)the search process of matching workers with jobs.
• C)the ups and downs in inflation.
• D)a slowdown in the economy.

---

Definitions:

Fixed Expenses

Costs that do not change with the level of production or sales within a certain range, such as rent and salaries.

Absorption Costing

An accounting method that includes all direct and indirect manufacturing costs in the cost of a product.

Net Operating Income

The income a company makes from its main business activities before subtracting any costs for interest and taxes.

Fixed Manufacturing Overhead

The portion of manufacturing overhead costs that remains constant irrespective of the level of production, such as salaries of supervisors and rent for the factory building.