Which One of the Following Would Likely Reduce the Level

question 137

Multiple Choice

Which one of the following would likely reduce the level of structural unemployment?

• A) increasing the minimum wage to encourage more people to work
• B) increasing the level of union bargaining power
• C) reducing unemployment insurance benefits
• D) strengthening restrictions on who can be licensed to enter certain professions

---

Definitions:

Long Run

A period in economic theory during which all inputs can be adjusted by firms, allowing them to fully adapt to changes in market conditions or to scale their operations.

Sales

The transactions or activities involved in selling goods or services in return for money or other compensation.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, or insurance premiums.

Negative Returns

A situation in which an increase in the amount of inputs used leads to a decrease in the level of output, often seen in cases of over-investment or inefficient production processes.