Unemployment Can Exist in a Market Clearing Model, If

question 48

Multiple Choice

Unemployment can exist in a market clearing model, if:

• A)the labour market is in disequilibrium.
• B)we allow capital utilization of less than 100%.
• C)we allow for differences among workers and jobs.
• D)all of the above.

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Definitions:

Pleasure Principle

In psychoanalytic theory, the instinctual seeking of pleasure and avoiding of pain to satisfy biological and psychological needs.

Id

In psychoanalytic theory, the component of personality that is driven by immediate gratification and impulses, without moral or logical reasoning.

Self-Transcendence

The process of overcoming the self and its limitations to achieve a wider sense of belonging, meaning, or connection with the universe, humanity, or a higher entity.

Psychoanalysis

Freud’s theory of personality that attributes thoughts and actions to unconscious motives and conflicts; the techniques used in treating psychological disorders by seeking to expose and interpret unconscious tensions.