Which One of the Following Types of Unemployment Results from the Wage

question 23

Multiple Choice

Which one of the following types of unemployment results from the wage being held above the competitive equilibrium wage?

• A) Structural unemployment
• B) Cyclical unemployment
• C) Frictional unemployment
• D) None of these answers

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Definitions:

Persistent Surplus

A situation where the supply of a good consistently exceeds the demand for it, often leading to a drop in prices.

Quota Rent

The earnings that accrue to the licensee from the difference between the domestic price and the world price of an imported good when imports are limited by a quota.

Government Imposes

Actions taken by a government to enforce regulations, taxes, or penalties on citizens and businesses.

Shrimp Market

The market or industry segment concerning the buying, selling, and trading of shrimp as a commodity or food product.