Suppose That in 2015,the Demand for Construction Workers Increased and the Demands

question 184

Multiple Choice

Suppose that in 2015,the demand for construction workers increased and the demands for pipeline and oil field workers diminished.Which type of unemployment does this situation illustrate?

• A) frictional unemployment created by a sectoral shift
• B) structural unemployment created by a sectoral shift
• C) frictional unemployment created by efficiency wages
• D) structural unemployment created by efficiency wages

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Definitions:

Sole Supplier

A market situation in which only one company provides a particular product or service, potentially leading to monopoly power and less competitive prices.

Monopoly

A reiteration for a market structure with a single seller dominating the whole supply of a particular product or service, without close substitutes.

Substitutes

Goods or services that can be used in place of each other; when the price of one increases, the demand for the other increases.

Perfect Competition

Perfect competition describes a market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller has market power to influence prices.