The Unemployment Rate Is Never Zero Because

question 30

Multiple Choice

The unemployment rate is never zero because:

• A)some wages are always above the market equilibrium level
• B)there will always be some people who choose not to work
• C)of the presence of discouraged workers
• D)of maximum wage laws

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Definitions:

Royal Legitimacy

The rightful authority and recognition of a monarch or royal family based on historical, legal, or divine principles.

Popular Sovereignty

The principle that the authority of a state and its government is created and sustained by the consent of its people, through their elected representatives, who are the source of all political power.

Adam Smith

A Scottish economist and philosopher, best known for his works "The Wealth of Nations," which laid the foundations for classical economics.

The Wealth of Nations

A seminal book by Adam Smith that laid the foundations of classical economics, emphasizing free markets, the division of labor, and the function of self-interest in commerce.