The Four Basic Types of Unemployment Are Frictional, Structural, Seasonal

question 216

Multiple Choice

The four basic types of unemployment are frictional, structural, seasonal, and

• A) cyclical.
• B) procedural.
• C) industrial.
• D) traditional.

Recognize the importance of costs, including labor and transportation, in location decisions.

Identify the role of intangible factors, such as innovation and proximity to competitors, in location decisions.

Demonstrate an understanding of how globalization and government policies impact location decisions.

Assess the significance of labor productivity and its calculation in the context of location decisions.

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Definitions:

Risk Premium

The additional return an investor demands for taking on a higher risk compared to a risk-free asset, indicating the compensation for bearing extra risk.

Principle of Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize risks.

Efficient Market

A financial market theory stating prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Concentrating Investment

Allocating a significant portion of an investment portfolio to a single investment or a small group of investments, increasing potential risk and return.