An increase in unemployment benefits ________ and an increase in international competition that changes the location of jobs ________
A) increases frictional unemployment; increases structural unemployment
B) increases structural unemployment; decreases frictional unemployment
C) decreases cyclical unemployment; decreases cyclical unemployment
D) decreases cyclical unemployment; increases cyclical unemployment
E) decreases structural unemployment; decreases cyclical unemployment
A
You might also like to view...
The principle that "as one input increases while the other inputs are held fixed, output increases at a decreasing rate" is known as the
A) marginal principle. B) principle of diminishing returns. C) principle of opportunity cost. D) spillover principle.
A likely explanation for the 2008-2009 recession is
A) an increase in energy prices. B) financial market problems. C) a drastic reduction in government expenses. D) an increase in taxes.
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. If the long-run supply curve is horizontal, then
A) some firms will enjoy long-run profits because they operate at minimum average cost. B) the long-run price will be $0.20 per pound. C) each consumer will purchase $100 worth of potatoes. D) the long-run price will be set just above $0.20 per pound.
Price controls often generate
A. greater price flexibility. B. rapid adjustment to market-clearing prices. C. more efficient markets. D. black markets.