Frictional Unemployment Is

question 5

Multiple Choice

Frictional unemployment is

• A)not inevitable;rather,it can be reduced to zero by well-designed public policies.
• B)not inevitable;rather,it could be reduced to zero if by the elimination of unemployment insurance.
• C)inevitable,because at any given time,jobs are being created in some firms and destroyed in other firms.
• D)inevitable,because in some industries,wages are always set above the level that brings supply and demand into equilibrium.

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Definitions:

Operating Expenses

The costs associated with running the day-to-day operations of a business, such as rent, utilities, and payroll.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against a fixed asset over its useful life, reducing its book value.

Fixed Asset

Long-term tangible property or equipment that a firm owns and uses in its operations to generate income, typically not expected to be converted to cash within a year.

Fixed Asset Turnover

A ratio that measures a company's ability to generate sales from its fixed-assets investments such as property, plant, and equipment.