When one worker is unemployed for one year,

Question

Quizplus · Accepted Answer

When a worker is unemployed for one year, the output that the worker would have produced is lost forever. This is a cost to the economy because there are resources (such as capital and land) that are not being used to their full potential, which lowers the overall productivity of the economy. In addition, the worker may also experience personal costs such as loss of income and self-esteem, which can have negative effects on their well-being and productivity in the long run.

When One Worker Is Unemployed for One Year