Suppose Juan Values a Slice of Pizza at $1

question 5

Multiple Choice

Suppose Juan values a slice of pizza at $1.50,but the pizza shop is unwilling to sell a slice of pizza for less than $2.00.These values imply that:

• A) it is efficient for the shop to sell a slice of pizza to Juan for $1.50.
• B) it is efficient for the shop to sell a slice of pizza Juan for $2.00.
• C) the shop needs to produce more efficiently in order to lower the price.
• D) it is not efficient for the shop to sell a slice of pizza to Juan.

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Definitions:

Cyclical Unemployment

This type of unemployment occurs due to economic downturns or recessions, reflecting a lack of demand for goods and services in the market.

Frictional Unemployment

Unemployment that occurs when workers are between jobs or are entering the workforce for the first time; it is often seen as a natural and necessary part of a healthy economy.

Seasonal Unemployment

This refers to the phenomenon where individuals temporarily lose their jobs due to changes in the season, common in industries like agriculture or tourism.

Nominal Wage

Nominal wage is the amount of money that an employee receives from an employer as payment for work, without adjusting for inflation.