The Reduction of Structural Unemployment in the United States' Economy

question 39

Multiple Choice

The reduction of structural unemployment in the United States' economy may require

• A) an increase in the minimum wage.
• B) a reduction in government spending.
• C) an decrease in interest rates.
• D) increased spending on worker retraining.

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Definitions:

Lerner Indices

A measure of a firm's market power calculated by the difference between price and marginal cost relative to the price.

Marginal Cost

The additional cost incurred by producing one more unit of a product, reflecting the cost of the resources used in the production of that extra unit.

Patent

A governmental right granted to an inventor, giving the exclusive right to make, use, sell, and import an invention for a certain period of time.

Marginal Cost

The cost added by producing one additional unit of a product or service, an important concept in economics for determining the optimal level of production.