Sectoral Changes in Demand

question 20

Multiple Choice

Sectoral changes in demand

• A)create frictional unemployment,while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment.
• B)create structural unemployment,while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment.
• C)and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment.
• D)and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.

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Definitions:

Contribution Margin Ratio

The percentage of sales revenue that remains after deducting variable costs, used to cover fixed costs and generate profit.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.

Contribution Margin

The gap between the income from sales and variable expenses, which serves to offset fixed expenses and produce earnings.