Which of the following is NOT a cost of unemployment?
A) unemployed people who feel emotional or psychological problems
B) unemployed people whose job skills diminish as time passes
C) lower production potential
D) a higher inflation rate

Question

Which of the following is NOT a cost of unemployment?  
A) unemployed people who feel emotional or psychological problems 
B) unemployed people whose job skills diminish as time passes 
C) lower production potential 
D) a higher inflation rate

Quizplus · Accepted Answer

A higher inflation rate is not typically considered a cost of unemployment. The other options, such as decreased production potential and skills erosion, and negative emotional and psychological impacts on unemployed individuals, are all potential costs of unemployment.

Which of the Following Is NOT a Cost of Unemployment