Some frictional Unemployment is inevitable because ?
Correct answer: B. There are changes in the demand for labour among different firms.
- A. of minimum wage laws
- B. There are changes in the demand for labour among different firms.
- C. Of unions
- D. All of these answers
- E. Efficiency wages may hold the wage
Explanation
Frictional unemployment arises while workers move between jobs or firms adjust their hiring, so some temporary job-search unemployment is unavoidable. Minimum-wage laws, unions, and efficiency wages instead tend to create wage-related unemployment.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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