Full Employment Implies Which of the Following Is Reduced to Zero

question 139

Multiple Choice

Full employment implies which of the following is reduced to zero?

• A)cyclical unemployment only 
• B)frictional unemployment only 
• C)frictional and structural unemployment only 
• D)frictional, structural, and cyclical unemployment

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Definitions:

Pareto Optimum

A distribution of resources in which it is not feasible to rearrange in a way that improves one person's situation without detrimentally affecting at least another individual's standing.

Utility Possibilities Frontier

A graph that shows the maximum amount of utility that can be achieved by different individuals or groups from a fixed set of resources.

Production Possibilities

A curve or frontier that illustrates the maximum feasible amounts of two commodities that can be produced with available resources and technology.

Competitive Equilibrium

A state in a market where supply equals demand, and no economic agent has the incentive to change their behavior, leading to an efficient allocation of resources.