Which of the Following Statements About Full Employment Is True

question 109

Multiple Choice

Which of the following statements about full employment is true?

• A)Liberal economists insist that an unemployment rate of 4 percent constitutes full employment.
• B)Conservative economists feel that an unemployment rate of 6 percent is a realistic portrayal of full employment.
• C)Economists cannot agree on what constitutes full employment,thus 5% represents a reasonable compromise.
• D)All of these choices are true.

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Definitions:

Terms of Sale

The conditions and stipulations under which a sale is conducted, including payment, delivery, and warranty details.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market more efficiently than if there were multiple suppliers, due to high fixed or startup costs.

Investor Owned

Pertains to a business or entity that is privately owned by investors who seek to earn profits from the operation.