Which Statement Is True

question 211

Multiple Choice

Which statement is true?

• A)During very bad recessions and depressions the total of our frictional and structural unemployment rates is greater than our cyclical unemployment rate.
• B)When our overall unemployment rate declines,most of this decline is due to falling structural and frictional unemployment.
• C)Cyclical unemployment is generally zero.
• D)The sum of the frictional and structural unemployment rates is 5 percent.

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Definitions:

Agriculture

The practice of cultivating the land, producing crops, and raising livestock for human consumption and use.

Allocatively Efficient

Allocative efficiency occurs when resources are distributed in a way that maximizes the net benefit to society.

Productively Efficient

Refers to a situation where an economy or firm produces goods at the lowest possible cost per unit, utilizing resources in the best way possible.

Product Differentiation

Product differentiation is the process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.