Which of the following is not an economic cost of unemployment?
A) an increase in wages for those workers who are employed as there are fewer people in the labour force
B) loss of tax revenue to the government
C) lower profit levels for firms than if there was full employment
D) loss of income to the individual who becomes unemployed

Question

Quizplus · Accepted Answer

An increase in wages for those workers who are employed is not an economic cost of unemployment; it is a potential benefit for those still employed, as reduced labor supply can drive up wages.

Which of the Following Is Not an Economic Cost of Unemployment