Suppose That Consumers Choose to Smoke Less and Chew Gum

question 459

Multiple Choice

Suppose that consumers choose to smoke less and chew gum more. Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more. This is an example of

• A)structural unemployment created by efficiency wages.
• B)structural unemployment created by sectoral shifts.
• C)frictional unemployment created by efficiency wages.
• D)frictional unemployment created by sectoral shifts.

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Definitions:

Gross National Debt

The total amount of money that a country's government has borrowed, including both the internal and external debt.

U.S. Debt

The total amount of money that the United States federal government owes to creditors, both domestic and international.

Government Spending

Expenses incurred by the government in the pursuit of its objectives, including spending on infrastructure, education, defense, and social services.

GDP

Gross Domestic Product; the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.