In terms of the musical chairs analogy in the text, which of the following is a description of structural unemployment?
A. There are too many chairs.
B. There are enough chairs, but it takes time to find one.
C. There are too few chairs.
D. There are enough chairs, but some are not the right size.
Answer: D
You might also like to view...
According to the permanent-income hypothesis, a transitory increase in a person's income will
A) increase consumption more than savings. B) increase savings more than consumption. C) be smoothed out to where the increases in consumption and savings are roughly equal. D) have the same effect on consumption as a permanent increase in income.
Any transaction that leads to a payment by a country's residents or government is a(n)
A) debt. B) asset. C) deficit item. D) surplus item.
The marginal revenue product of labor declines as the number of workers increases because
A. firms must lower prices for the final product when they want to sell more units. B. of the law of diminishing marginal product. C. of diseconomies of scale. D. firms hire the most efficient workers first and the least efficient workers last.
The "macroeconomics" rebuttal to the traditional analysis of the minimum wage argues that
A. people work harder when they feel they are inadequately compensated, therefore an increase in the minimum wage may actually lower productivity. B. in the short-run, the demand elasticity of labor is such that businesses will actually increase the number of workers hired when the minimum wage increases. C. the rich consume more than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand. D. the rich consume less than the poor out of extra income, therefore an increase in the minimum wage increases aggregate demand.