Which Condition Causes Structural Unemployment

question 38

Multiple Choice

Which condition causes structural unemployment?

• A) Wages are kept above the equilibrium level.
• B) People choose not to work at the equilibrium wage.
• C) Some wages are below the equilibrium level.
• D) Conditions for unemployment insurance benefits relax.

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Definitions:

Production Possibilities Schedule

A graphical representation that shows the different combinations of two goods or services that can be produced within a given time period, provided that available resources and technology are static.

Consumer Goods

Goods that are produced for direct consumption by the end user.

Capital Goods

Long-term assets purchased by businesses to produce goods and services.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods given a set of inputs (resources), assuming all resources are fully utilized.