Which of the Following Causes of Unemployment Is Not Associated

question 32

Multiple Choice

Which of the following causes of unemployment is not associated with a wage rate above the market equilibrium level?

• A)efficiency wages
• B)job search
• C)minimum-wage laws
• D)unions

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the economic benefit to consumers.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers.