Studies Have Shown That Government Retraining Programs

question 37

Multiple Choice

Studies have shown that government retraining programs

• A) usually cost more than the benefit they create or, at best, have benefits modestly above costs.
• B) have been cost effective methods of retraining workers.
• C) are cost effective methods of retraining younger workers, but not workers over age 45.
• D) work best when training workers in firm-specific skills .

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Definitions:

Long-Run Aggregate Supply Curve

A graphical representation showing the relationship between the overall price level and the total output produced by an economy when all factors of production are variable.

Sticky Price Theory

An economic theory suggesting that prices of goods do not adjust immediately to changes in supply and demand, leading to disequilibrium in the market.

Sticky Wage Theory

The hypothesis that wages do not adjust quickly to changes in economic conditions, leading to unemployment and other inefficiencies.

Price Level

A measure of the average prices of goods and services in an economy at a given time, often monitored to understand inflation and the cost of living.