The most significant real economic cost of high unemployment is:
A)the money cost of unemployment insurance payments to the unemployed.
B)the lost tax revenue that might have been paid by persons if they had worked.
C)the difference in income between a person's lost job and new job.
D)the potential goods and services that might have been produced but weren't.

Question

The most significant real economic cost of high unemployment is:
A)​the money cost of unemployment insurance payments to the unemployed.
B)​the lost tax revenue that might have been paid by persons if they had worked.
C)​the difference in income between a person's lost job and new job.
D)​the potential goods and services that might have been produced but weren't.

Quizplus · Accepted Answer

The potential goods and services that might have been produced but weren't is the most significant real economic cost of high unemployment because unemployment means there are fewer people producing goods and services, which ultimately results in a decrease in overall economic output. This loss of potential output can have long-lasting effects on an economy, including lower economic growth and a decrease in the standard of living. The other options may also impose some economic costs, but they are not as significant as the loss of potential economic output.

The Most Significant Real Economic Cost of High Unemployment Is