Costs of unemployment include
A) structural unemployment.
B) the output lost due to the fact that the economy is not running at full employment.
C) reduction in the labor force.
D) higher wages.

Question

Quizplus · Accepted Answer

The output lost due to the fact that the economy is not running at full employment is a cost of unemployment. When individuals are unemployed, they are not producing goods or services, which leads to a decrease in the overall output and can impact the economy's growth and development. Structural unemployment, reduction in the labor force, and higher wages may also be consequences of unemployment but are not direct costs.

Costs of Unemployment Include