Unemployment That Results from Fundamental Technological Changes in Production, or from the Substitution

question 125

Multiple Choice

Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is:

• A) the natural rate of unemployment.
• B) full employment.
• C) cyclical unemployment.
• D) frictional unemployment.
• E) structural unemployment.

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Definitions:

Protective Tariffs

Duties charged on imports to defend local sectors from international rivals by elevating the prices of goods from abroad.

Manufactured Goods

Products that have been processed or transformed from raw materials into finished items through the use of machinery or human effort.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, deflation, and a significant fall in economic output.

Worst Recession

Refers to the most severe period of economic decline in activity across an economy, lasting more than a few months.