Business High School

Which is not the cost of rising unemployment in an economy?

a)Lower Tax Revenues (Government collects less taxes)

b)Higher Benefits Payments

c)Crime, Vandalism, Family Breakdowns, Social Welfare, and Regional Decay in the Society

d)Opportunity Cost of Lost Potential Output

e)Flourishing Economy

Answers

Answer 1

Answer:

e)Flourishing Economy

Explanation:

Unemployment is a scenario where members of the adult population seek job opportunities but cannot get any. Therefore, an unemployed person is a jobless adult who is actively seeking employment.

Unemployed people have no income, which means they do not pay taxes. They may resort to crime to support themselves. Jobless people usually claim unemployment benefits, which is a burden to the government. A jobless person is mostly idle, which is a waste of skill, time, and knowledge.

Unemployment has adverse effects on the economy. It does not support the growth or flourishing of economic activities.

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