When Unemployed Workers Get Discouraged and Stop Looking for Work

question 19

True/False

When unemployed workers get discouraged and stop looking for work, the labour force participation rate falls.

---

Definitions:

Bad-Debt Losses

Financial losses incurred when a debtor fails to make payment on a loan, leading to a write-off by the creditor.

Collection Costs

Expenses incurred in the process of recovering debts or payments from debtors.

Accounts Receivable

Money owed to a company by its customers for products or services that have been delivered or used but not yet paid for.

Inventory Carrying Costs

Expenses associated with storing and maintaining a company's stock of goods over a certain period, including warehousing, insurance, depreciation, and opportunity costs.