Curtis Is a Stockbroker

question 64

Multiple Choice

Curtis is a stockbroker.He has had several job offers,but he has turned them down because he thinks he can find a firm that better matches his tastes and skills.John is an accountant.He has looked for work for some time,but no accounting firms are hiring.Which of the following best describes the nature of their unemployment?

• A) John and Curtis are both frictionally unemployed.
• B) John and Curtis are both structurally unemployed.
• C) Curtis is frictionally unemployed,and John is structurally unemployed.
• D) Curtis is structurally unemployed,and John is frictionally unemployed.

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Definitions:

Partnerships

A legal form of business operation between two or more individuals who share management and profits.

Principal-Agent Problem

A dilemma in economics occurring when one party (the agent) is able to make decisions and/or take actions on behalf of, or that impact, another party (the principal).

Profit-Sharing Plans

A company program that gives employees a share in the profits of the company.

Residual Claimants

Individuals or entities entitled to a share of a company's profits after all obligations have been met.