Cyclical Unemployment Is Caused by

question 37

Multiple Choice

Cyclical unemployment is caused by

• A)frictional and structural unemployment
• B)frictional but not structural unemployment
• C)structural but not frictional unemployment
• D)neither frictional nor structural unemployment

Recognize the significance of employment insurance and its function during job transitions.

Identify the role and benefits of employer-sponsored programs and voluntary benefits in compensation packages.

Comprehend the contribution of benefit programs to attracting, retaining employees, and their legality.

Understand the guidelines regarding benefit portability, tax treatment, and their impact on employee motivation.

---

Definitions:

Barriers to Entry

are obstacles that make it difficult for new competitors to enter an industry, including high startup costs, strict regulations, and established brand loyalty.

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical.

Monopolies

Market structures characterized by a single seller controlling a large portion of the market and the lack of viable competition.

Long-run Equilibrium

A state in which all factors of production and market forces are in balance, with no external pressures prompting change.