Which of the Following Statements Is True About the U

question 48

Multiple Choice

Which of the following statements is true about the U.S.economy?

• A)Each year,many new jobs are created,but few existing jobs are destroyed,and the unemployed find jobs quickly.
• B)Each year,few new jobs are created,but few existing jobs are destroyed,keeping unemployment low.
• C)Each year,many new jobs are created and many existing jobs are destroyed.
• D)Each year few jobs are created,and therefore it takes the unemployed a long time to find a new job.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in revenues, indicating the extent to which a firm can increase profits by increasing sales.

Fixed Costs

Expenses that do not change in proportion to the level of goods or services produced within a certain period.

Variable Costs

Costs that vary directly with the level of production or service provision.

Scenario Analysis

A method of evaluating potential future events through examining different possible scenarios.