Which of the Following Is True

question 152

Multiple Choice

Which of the following is true?

• A)The unemployment rates of the major European economies have been lower than the United States during the last decade.
• B)The natural rate of unemployment is unaffected by labor market regulations and other dimensions of public policy.
• C)High unemployment rates over lengthy time periods are indicative of structural factors that are adversely affecting the natural rate of unemployment.
• D)The unemployment rates of Spain and Italy were among the lowest in the world during the mid 1990s and early 2000s.

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Definitions:

Price Takers

Sellers who must take the market price in order to sell their product. Because each price taker's output is small relative to the total market, price takers can sell all their output at the market price, but they are unable to sell any of their output at a price higher than the market price.

Market Demand

The total demand for a product or service in a market, summing up individual demands at each price level.

Profit-Maximizing Output

The level of production at which a company can achieve the highest possible profit, considering its cost structure and market demand.

Market Price

The current price at which a good or service can be bought or sold in a particular market, determined by supply and demand.