Cyclical unemployment occurs when
A. individuals give up the search for employment.
B. individuals with skills no longer valued in the domestic labor market cannot find employment.
C. individuals enter the labor market and make the rounds of potential employers.
D. a downturn in economic activity decreases employment.
Answer: D
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The theory of consumer behavior is based on certain assumptions. The set of four basic assumptions includes:
A) completeness. B) transitivity. C) intransitivity. D) Both A and B are correct. E) Both A and C are correct.
If a 20 percent decrease in the price of chicken results in a 10 percent increase in the quantity demanded, the price elasticity of demand has a value of
a. 0.5 b. 2 c. 1 d. 0.1 e. none of these
Demand-side inflation is normally accompanied by
a. falling real GDP, while supply-side inflation may be accompanied by rising real GDP. b. falling real GDP; the same is true of supply-side inflation. c. rising real GDP, while supply-side inflation may be accompanied by falling real GDP. d. rising real GDP; the same is true of supply-side inflation.
A headline reads: "Economy Still in Recession." The type of unemployment most closely associated with this economic condition would be:
A. structural. B. frictional. C. search. D. cyclical.