Which of the Following Statements Is True of Unemployment

question 24

Multiple Choice

Which of the following statements is true of unemployment?

• A)Cyclical unemployment decreases during recessions and increases during expansions.
• B)Some unemployment exists even when the economy is healthy and growing.
• C)Unemployment and inflation are not related.
• D)People who are willing and able to work but have given up the search for a job are considered unemployed.
• E)Voluntary unemployment refers to a situation in which people who really do not want to work only pretend to look for jobs.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive in the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the utility gained from the purchase.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.