The purchase by consumers of inventory converts that inventory from investment goods to consumption goods

Fixed costs are

A) a production expense that does not vary with output. B) a production expense that changes with the quantity of output produced. C) equal to total cost divided by the units of output produced. D) the amount by which a firm's cost changes if the firm produces one more unit of output.

Derrick loses his job, but does not look for work. Which of the following are consequences of this change in Derrick's status?

a. unemployment rises and the labor force is unchanged b. unemployment rises and the labor force falls c. unemployment and the labor force are unchanged d. unemployment is unchanged and the labor force falls