Consumers Decide to Buy More Computers and Fewer Typewriters

question 418

Multiple Choice

Consumers decide to buy more computers and fewer typewriters.As a result,computer companies expand production while typewriter companies lay-off workers.This is an example of

• A) frictional unemployment created by efficiency wages.
• B) frictional unemployment created by sectoral shifts.
• C) structural unemployment created by efficiency wages.
• D) structural unemployment created by sectoral shifts.

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Definitions:

Government Intervention

Actions taken by a government to influence or regulate various activities, markets, or economic conditions in a country.