Explain the differences among the frictional, structural, and cyclical forms of unemployment.
What will be an ideal response?
Frictional unemployment is the unavoidable and even positive type of unemployment characterized by people who are searching for new jobs or waiting to take jobs in the near future. Structural unemployment is unemployment due to changes occurring over time in the structure of consumer demand or in technology which result in some skills being in less demand or even becoming obsolete. It may also be due to a change in the geographic distribution of job opportunities. Cyclical unemployment is the unemployment caused by the recession phase of the business cycle. Economists place special emphasis on this type of unemployment because they believe that economic policy can reduce cyclical fluctuations in the economy and therefore can reduce cyclical unemployment.
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Which of the following is most likely to be a price taker?
a. a respected heart surgeon b. an ice cream shop owner located in Atlanta, Georgia c. a beachside tourist resort d. a Kansas wheat farmer
In the above figure, when disposable income is greater than 600
A) saving is negative. B) the MPC is greater than 1. C) saving is positive. D) the MPS is negative.
Economic growth policies always involve
a. trade-offs b. lower taxes c. higher government spending d. more investment e. more transfer payments
As the wage rate increases for computer programmers, the
a. supply curve for computer programmers will shift to the right b. supply curve for computer programmers will shift to the left c. demand curve for computer programmers will shift to the left d. minimum wage will fall in this labor market e. supply curves for workers in similar industries will shift to the left