The Primary Cause of Frictional Unemployment Is

question 96

Multiple Choice

The primary cause of frictional unemployment is

• A) the low level of the current minimum wages.
• B) the lack of and cost of acquiring information about available job opportunities.
• C) a mismatch of the skills of unemployed workers with the skills needed for job openings.
• D) discouraged workers who quit looking for a job after extended periods of unsuccessful job search.

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Definitions:

Marginal Revenue

The additional income received from selling one more unit of a good or service; it is an important concept for determining the optimal level of output for a company.

Purely Competitive Firm

A company operating in a market where there are many buyers and sellers, the products are homogeneous, and there are no barriers to entry or exit.

Average Revenue

The revenue a company generates per unit of output sold, calculated by dividing total revenue by the number of units sold.

Perfectly Elastic Demand Curve

A demand curve with infinite elasticity, where consumers are willing to purchase any amount of a product at a certain price, but none at any slightly higher price.