Which Statement Is FALSE

question 154

Multiple Choice

Which statement is FALSE?

• A) Both frictional and structural unemployment can occur,even if unemployment is at its natural level.
• B) Cyclical unemployment is unemployment in excess of the natural rate.
• C) A new university graduate looking for that first professional job may be frictionally unemployed.
• D) Efficiency wages may cause frictional unemployment.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service versus what they actually receive, due to market price.

Price Floor

A government or regulatory-imposed minimum price for a particular good or service, above the equilibrium price.

Government Purchases

Expenditures by government entities on goods and services that are part of government consumption or investment.

Producer Surplus

The difference between the amount producers receive from selling a good or service and the minimum amount they would accept for that good or service.