Regarding the Categories of Unemployment, Which Statement Best Describes How

question 189

Multiple Choice

Regarding the categories of unemployment, which statement best describes how the effect of sectoral changes compares to the effect of firms paying higher-than-equilibrium wages?

• A) Sectoral changes create frictional unemployment, while firms paying wages above equilibrium create structural unemployment.
• B) Sectoral changes create structural unemployment, while firms paying wages above equilibrium create frictional unemployment.
• C) Sectoral changes and firms paying wages above equilibrium both create structural unemployment.
• D) Sectoral changes and firms paying wages above equilibrium both create frictional unemployment.

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Definitions:

Retailing

The process of selling consumer goods or services directly to customers through multiple channels of distribution in order to earn a profit.

Business Activities

The tasks and actions that companies undertake to provide goods or services, generate revenue, and achieve their objectives.

Consumers

Individuals or organizations that use economic services or goods.

Distribution Intensity

indicates the level of market coverage aimed for a product, ranging from intensive, selective, to exclusive distribution strategies.