Examlex

Solved

Which of the Following Statements About Full Employment Is Correct

question 391

Multiple Choice

Which of the following statements about full employment is correct? I. Full employment means that the unemployment rate is less than 1/2 of 1 percent.
II) Full employment means that the transaction costs associated with getting a job are zero.


Definitions:

Fixed Input

Production factor that cannot be varied.

Technological Improvement

A process of innovation where new technologies or improvements to existing ones increase the efficiency or effectiveness of products, services, or processes.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot increase proportionally.

Total Product Curve

A graphical representation showing the relationship between the total output produced and the quantity of a single input.

Related Questions