Suppose That in PetroLand the Oil Fields in the Western

question 63

Multiple Choice

Suppose that in PetroLand the oil fields in the western region suddenly stop producing,causing oil companies to shift activities to their fields in the eastern region.This is bound to cause some ________ unemployment in the western region of the country's economy.

• A)cyclical
• B)efficiency-wage
• C)frictional
• D)structural
• E)voluntary

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Definitions:

Risky Asset

An asset that carries a significant possibility of losing some or all of its investment value.

Risk-free Asset

An investment that is expected to deliver guaranteed returns, with minimal to no risk of financial loss.

Arithmetic Average

The simple mean calculated by dividing the sum of a set of numbers by the quantity of numbers in the set.

Geometric Average

A method of calculating the average rate of return that accounts for compounding, often used for investment portfolios.