An Unemployment Rate of Zero Percent Cannot Be Expected Because

question 136

Multiple Choice

An unemployment rate of zero percent cannot be expected because

• A) some portion of the labor force will always be between jobs.
• B) cyclical unemployment will always exist.
• C) there will always be discouraged workers.
• D) there are some people who do not want to work.

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, as opposed to accounting profit which only subtracts explicit costs.

Purely Competitive

A market structure characterized by a large number of sellers and buyers, homogeneous products, and no barriers to entry or exit.

Short-run Supply Curve

Represents the relationship between price and quantity supplied over a short period, assuming some inputs are fixed.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of output changes as production increases.