Which of the Following Is Most Likely to Reduce the Natural

question 57

Multiple Choice

Which of the following is most likely to reduce the natural rate of unemployment?

• A)the Internet providing more readily available information about available jobs
• B)provincial legislators voting for increasing the minimum wage
• C)passing laws that make it more difficult to monitor the efforts of workers
• D)firms offering higher-than-equilibrium wages to attract better job candidates

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Definitions:

Law of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other factors remain constant.

LRATC

Long-Run Average Total Cost, referring to the average cost per unit of output when all inputs are considered variable over time.

Economies of Scale

Businesses experience cost savings linked to the size of their operations, with the per-unit cost usually falling as the operation size grows.

Entire Range

The complete spectrum or entirety of something, without leaving parts out.