The Type of Unemployment for Which the Net Economic Costs

question 19

Multiple Choice

The type of unemployment for which the net economic costs are most likely to be small is

• A)cyclical unemployment.
• B)chronic unemployment.
• C)frictional unemployment.
• D)structural unemployment.

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Definitions:

Penetration Pricing

A pricing strategy where a product is offered at a low price to gain market share quickly.

Psychological Pricing

A marketing strategy that utilizes price points believed to have a psychological impact, encouraging purchases.

Penetration Pricing

A marketing strategy where a product is priced lower than its competitors in order to attract customers and gain market share.

Price Skimming

A pricing strategy involving setting high prices at the launch of a new product to maximize profits from customers willing to pay more, before reducing the price over time.