Full Employment Occurs When

question 8

Multiple Choice

Full employment occurs when

• A) there is no cyclical unemployment.
• B) there is no unemployment.
• C) there is no frictional unemployment.
• D) the unemployment rate is less than 5 percent.

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Definitions:

Substitutes

Goods or services that can be used in place of each other, allowing consumers to switch if there is a change in price or availability.

Producer Surplus

The difference between the amount that producers are willing and able to sell a good for and the actual amount they receive due to market dynamics.

Equilibrium Price

The price at which the quantity of goods demanded by consumers equals the quantity of goods supplied, resulting in market balance.

Legal Price

A price that is established by law or regulation, rather than determined by the market.