Sectoral Shifts in Demand for Output

question 219

Multiple Choice

Sectoral shifts in demand for output

• A)create structural unemployment.
• B)immediately reduce unemployment.
• C)increase unemployment due to job search.
• D)do not affect demand for labor.

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Definitions:

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit, indicating how much each unit contributes to covering fixed costs.

Variable Cost Per Unit

The cost that varies directly with the level of production or sales volume; it increases as production increases and decreases as production decreases.

Selling Price Per Unit

The amount of money charged for each unit of a product or service.

Target Profit

The amount of profit that a company aims to make in a certain period.