Classical Unemployment Can Be Caused by Which of the Following

question 115

Multiple Choice

Classical unemployment can be caused by which of the following?

• A)Minimum wage laws
• B)Bargaining by unions
• C)Efficiency wages
• D)All of these create classical unemployment.

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Definitions:

Entrepreneurship

The act of creating, organizing, and running a new business venture, often taking on financial risks in the hope of profit and innovation.

Specialization

The process by which individuals, firms, or countries concentrate on producing a narrow range of goods or services, often to increase efficiency and output.

Economic System

The organized way in which a country or a society allocates its resources and apportions goods and services in the national community.

Fundamental Questions

Basic questions that economies face regarding what to produce, how to produce, and for whom to produce, based on limited resources.