Discouraged Workers Are

question 216

Multiple Choice

Discouraged workers are

• A) considered cyclically unemployed.
• B) considered structurally unemployed.
• C) considered frictionally unemployed.
• D) not considered as part of the labor force.

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Definitions:

Income Effect

The Income Effect describes how changes in an individual's income affect their purchasing capacity and thus their demand for goods and services.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, opposite to normal goods.

Substitution Effect

The economic principle that as the price of a good rises, consumers will replace it with cheaper alternatives, whereas if its price falls, the good will be favored over more expensive substitutes.

Total Effect

Refers to the entire impact or outcome resulting from a specific action or series of actions, considering all direct and indirect consequences.