Unemployment That Arises When There Is a Mismatch Between the Quantity

question 156

Multiple Choice

Unemployment that arises when there is a mismatch between the quantity of labor demanded and the quantity of labor supplied is referred to as ________.

• A) frictional unemployment
• B) structural unemployment
• C) cyclical unemployment
• D) the natural rate of unemployment

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Definitions:

Opportunity Cost

The cost of the next best alternative foregone when making a decision.

Production Possibilities Frontier

A graph that shows the combinations of two goods that an economy can produce using all available resources and technology efficiently.

Constant

A value or factor that does not change in mathematical expressions or experiments, representing stability within a specified context.