Meredith Is Looking for Work as a Computer Programmer

question 127

Multiple Choice

Meredith is looking for work as a computer programmer. Although her prospects are good, she hasn't yet taken a job. Julie is looking for work in a steel mill, but there aren't many job ads for steel workers and every time she shows up for an interview, there are many more people than openings. Which statement best describes the nature of their unemployment?

• A) Meredith and Julie are both frictionally unemployed.
• B) Meredith and Julie are both structurally unemployed.
• C) Meredith is frictionally unemployed, and Julie is structurally unemployed.
• D) Meredith is structurally unemployed, and Julie is frictionally unemployed.

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Definitions:

Short Run

In economics, a period during which at least one input, like factory size or machinery, is fixed and cannot be changed, as opposed to the long run where all factors can be varied.

Long Run

A period in economic analysis where all inputs can be adjusted and there are no fixed factors of production.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true profitability of a company.

Short Run

A period in economics during which at least one input is fixed and cannot be changed. It contrasts with the long run, where all inputs can be adjusted.