Answer:
Rusty is cyclically unemployed.
Explanation:
Rusty Z. Wrench loses his job as a delivery truck mechanic and remains unemployed when the economy enters into a recession. When the economy recovers, Rusty is rehired.
Here, unemployment is being caused by the business cycle so we will classify it as cyclical unemployment.
Cyclical unemployment can be defined as the unemployment that is caused due to fluctuations in the economy or business cycles.
<span>Diminishing marginal returns - By investing in hiring an additional worker, Michelle does not receive twice the productivity compared to when she had only 1 worker. Productivity only increased by roughly 50%. I would consider the worker to be more of an investment, and thus count as diminishing marginal returns, rather than decreasing returns to scale, which I consider to apply more to assets, such as machines for manufacturing or in the case of the scenario, an additional kiln.</span>
Limited financial liability. It is one of the advantages because the strain of effort and time would be not part of the investment and if the it is successful you're earning even though you're not doing anything. You're only role is able to provide money or resources to the venture.
sorry i do not speak spanish but if you translate then i can help
