An Unemployment Rate of Zero Cannot Be Expected Since

question 80

Multiple Choice

An unemployment rate of zero cannot be expected since

• A) there are some people who do not want to work.
• B) there will always be discouraged workers.
• C) some portion of the labor force will always be between jobs.
• D) aggregate demand can never create enough job vacancies.

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Definitions:

Economic Rent

Extra earnings above the minimum amount necessary for a resource to remain in its current use, often arising from scarcity or market control.

Natural Resources

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Market Prices

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

Economic Profits

The surplus remaining after total costs are deducted from total revenues, accounting for both explicit and implicit costs.