Which of the following is true of unemployment?
A) It is defined as the number of people actively looking for work who do not have jobs.
B) The result is that the economy operates inside its production possibilities curve.
C) There are psychological consequences associated with unemployment.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the given statements are true regarding unemployment. Option A correctly defines unemployment as the number of people actively seeking work but not having jobs. Option B is incorrect as unemployment leads to a point inside the production possibilities curve, not outside it. Option C is also true as unemployment can cause psychological distress and negative effects on mental health. Therefore, D is the correct answer.

Which of the Following Is True of Unemployment