The Basic Economic Problem of ________ Has Always Existed and Will

question 55

Multiple Choice

The basic economic problem of ________ has always existed and will continue to exist.

• A)scarcity
• B)efficiency
• C)inflation
• D)recession

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Definitions:

Cyclical Unemployment

Unemployment that rises during economic downturns and falls when the economy improves, linked to business cycles.

Frictional Unemployment

Unemployment that occurs when people are between jobs or are entering the labor market for the first time.

Discouraged Workers

Individuals who are not actively seeking work because they believe no jobs are available for them or there are no jobs for which they would qualify.

Unemployment Rate

The rate of unemployment among people actively looking for work in the labor force.