Unemployment That Results from Fundamental Technological Changes in Production, or from the Substitution

question 125

Multiple Choice

Unemployment that results from fundamental technological changes in production, or from the substitution of new goods for customary ones, is:

• A) the natural rate of unemployment.
• B) full employment.
• C) cyclical unemployment.
• D) frictional unemployment.
• E) structural unemployment.

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Definitions:

Uncertainty

The state of having limited knowledge where it is impossible to exactly describe existing state or future outcomes, often affecting decision-making processes.

Budgeted Profit and Loss Statement

A financial statement forecasting the revenue, expenses, and profit for a future period, based on management's estimates.

Operating Expenses

Ongoing expenses for operating a business, excluding the cost of goods sold but including costs like rent, utilities, and payroll.

Budgetary Slack

The practice of underestimating revenues or overestimating costs when preparing a budget, to create a buffer that makes budget targets easier to achieve.