Which of the following is an opportunity cost of cyclical unemployment?
A) A higher wage rate
B) A lower interest rate
C) Lower taxes paid by the employed
D) Costs of updating prices
E) Lost earnings of the unemployed.

Question

Quizplus · Accepted Answer

The opportunity cost of cyclical unemployment is the lost earnings of the unemployed. This is because when individuals are unemployed, they are not earning wages or income, and therefore experience a loss of potential earnings.

Which of the Following Is an Opportunity Cost of Cyclical