A headline reads: "Steel industry suffers slump as import competition increases; unemployment rises." This type of unemployment can best be characterized in economic terms as:
a. Natural
b. Cyclical
c. Structural
d. Frictional
c. Structural
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Excess capacity is the
A) difference between a perfectly competitive firm's and a monopolistically competitive firm's output. B) difference between a perfectly competitive firm's and a monopoly's output. C) output at the maximum point of the ATC curve. D) None of the above answers is correct.
Compared to the no-trade situation, when a country imports a good:
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic consumers gain, domestic producers lose an equal amount.
The standard supply/demand framework:
A. can be modified to explain real-world events. B. explains real-world events with no need for modification. C. should not be modified to explain real-world events. D. cannot be modified to explain real-world events.
To the corporation, bonds are riskier than stocks because
A. interest rates fluctuate. B. bond interest requires that firms make a fixed payment. C. investors prefer stocks to bonds. D. speculators manipulate bonds more than stocks.