Economists Expect Some Unemployment to Exist Even at Times of "Full

question 72

Multiple Choice

Economists expect some unemployment to exist even at times of "full employment" for,among others,the following reasons:
1) actual GDP is rarely equal to potential GDP;
2) as the economy changes,the structure of the existing labour force is not the same as the structure of labour demand;
3) people entering the labour force typically take some time to find a job.

• A)1 only
• B)2 only
• C)3 only
• D)2 and 3
• E)1 and 2

Differentiate between the characteristics of monopolistic competition and other market structures.

Understand the role of advertising and product differentiation in monopolistic competition.

Analyze factors contributing to excess capacity in monopolistic competition.

Identify conditions under which firms in monopolistic competition can earn profits in the short run but break even in the long run.

---

Definitions:

Zen Buddhism

A form of Buddhism that emphasizes meditation and intuition rather than ritual worship or study of scriptures.

Hasegawa Tohaku

A prominent Japanese painter of the 16th century, famed for his ink paintings, screens, and contributions to the development of the Hasegawa school of painting.

Pine Forest

A large area densely populated with pine trees, which can provide resources like timber, resin, and serve as important ecological habitats.

Mundane Reality

The aspects of everyday life that are considered ordinary or lacking in spiritual or fantastical elements.