Which of the Following Is a Form of Unemployment

question 23

Multiple Choice

Which of the following is a form of unemployment?

• A) unseasonal unemployment
• B) fractional unemployment
• C) cyclical unemployment
• D) fiscal unemployment

---

Definitions:

Chronic Excess Capacity

A persistent situation in which industries or firms have more production capacity available than is being used, often leading to economic inefficiencies and reduced profit margins.

Minimum-Cost Output

The quantity of output at which the average total cost is lowest—the bottom of the U-shaped average total cost curve.

Perfectly Competitive

refers to a market structure where there are many buyers and sellers, all selling identical products, with no single market participant being able to influence the market price.

Monopolistically Competitive

A market structure characterized by many firms selling similar but not identical products, with some degree of market power.