Why Are High Rates of Unemployment of Concern to Economists

question 35

Multiple Choice

Why are high rates of unemployment of concern to economists?

• A) Higher rates of unemployment generally lead to higher inflation rates.
• B) Environmental destruction is more prevalent when unemployment rates are high.
• C) There is lost output that could have been produced if the unemployed had been working.
• D) All of these options are reasons why economists are concerned about high unemployment rates.

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Definitions:

Institutional Incentive

Motivations or rewards structured within organizations or systems, encouraging particular patterns of behavior among their participants or members.

Virginia Plan

A suggestion from delegates from Virginia for a two-chambered legislative body during the creation of the United States Constitution in 1787.

National Government

Refers to the organization through which political authority is exercised at the national level, encompassing all branches and levels of governance.

Veto

The power of a president or governor to reject a bill proposed by a legislature, effectively preventing it from becoming law without further legislative action.