Explain the differences between frictional unemployment and structural unemployment
What will be an ideal response?
Frictional unemployment refers to unemployment that arises because it takes time for an unemployed worker to find a firm with a well-matched job vacancy. This is generally unemployment arising from the process of job search, which normally takes time. On the other hand, structural unemployment arises when there is a persistent gap between the quantity of labor supplied and demanded.
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Which of the following are inherent in classical theory?
a. Flexible prices. b. Flexible wages. c. Long-run full employment. d. All of these.
Which of the following is correct?
A. In the short run, if a firm chooses to produce no output (i.e. shut down) its total costs of production will equal its total fixed costs. B. If a firm decides to shut down, its short-run total costs will equal 0 C. As a firm increases output in the short run, the change in total costs is equal to the change in total variable costs. D. A firm minimizes its total costs of production when average variable cost is minimized. Reset Selection
The concept that economic growth can do more than just give us more goods and services goes back to Adam Smith
Indicate whether the statement is true or false
The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A. buying long. B. selling short. C. a tariff. D. arbitrage.