As the Unemployment Rate Falls

question 65

Multiple Choice

As the unemployment rate falls,

• A)the proportion of the unemployed finding a job increases.
• B)the separation rate increases.
• C)the young and unskilled experience larger-than-average decreases in unemployment.
• D)both A and C.
• E) all of the above

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Definitions:

Customs Union

An agreement between two or more countries to remove trade barriers and reduce tariffs among them, and to establish a common external tariff against other countries.

Common External Tariff

A uniform tariff rate adopted by a customs union or common market on imports from countries outside the union.

Free Trade Area

A region where member countries have agreed to reduce or eliminate trade barriers, such as tariffs and quotas, among themselves.

Dumping

The practice wherein an exporter sells products in a foreign state for less than the price charged for the same or comparable goods in the exporter’s home market.