During  the Recession of 2008-2009, the Length of Time Qualified Workers

question 36

Multiple Choice

During  the recession of 2008-2009, the length of time qualified workers were permitted to draw unemployment benefits was increased from 26 to up to 99 weeks. Economic theory indicates that this extension would

• A) reduce the opportunity cost of job search and lead to longer spells of unemployment.
• B) increase the opportunity cost of job search and lead to shorter spells of unemployment.
• C) reduce the long-term rate of unemployment.
• D) increase the current supply of labor and make it easier for employers to hire workers.

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Definitions:

Oligopoly

A market structure characterized by a small number of large firms dominating the industry, often leading to limited competition.

Pure Monopoly

A market structure characterized by a single seller, selling a unique product in the market with no close substitutes, leading to significant control over prices.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for competition on factors other than just price.