Cyclical unemployment occurs when
A. individuals give up the search for employment.
B. individuals with skills no longer valued in the domestic labor market cannot find employment.
C. individuals enter the labor market and make the rounds of potential employers.
D. a downturn in economic activity decreases employment.
Answer: D
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Governments can use subsidies ________
A) as a means of increasing government spending B) when they want to increase taxes C) to achieve an efficient outcome if there are external costs D) to achieve an efficient outcome if there are external benefits
All of the following, except one, are included in the profit earned by a firm's owners. Which is the exception?
a. the reward for developing new products b. the reward for moving an established business into new geographic markets c. the reward for risk taking d. salaries that compensate for the owners' time e. dividend payments to the stockholders