How Can There Be Unemployment in a Market Clearing Model

question 59

Essay

How can there be unemployment in a market clearing model?

---

Definitions:

Lemon Laws

are state laws in the United States designed to protect consumers from buying or leasing defective vehicles that cannot be repaired satisfactorily.

Right to Cover

The Right to Cover allows a party to make a purchase of goods or services from another source if the original seller breaches the contract, often seeking reimbursement for any cost difference.

Installment Sale

A method of sale that allows the buyer to make payments over a period of time, eventually leading to ownership of the product or property.

Personal Watercraft

A recreational water vehicle that one rides on, rather than inside of, such as a jet ski.