Moderate

Unemployment means that ?

Correct answer: D. at the going wage rate, there are people who want to work but cannot find work.

  • A. there is excess demand in the labour market
  • B. there are some people who will not work at the going wage rate.
  • C. people are not willing to work at the going wage rate.
  • D. at the going wage rate, there are people who want to work but cannot find work.

Explanation

Unemployment exists when people who are willing and able to work at the prevailing wage cannot find jobs. People unwilling to work at that wage are not counted as unemployed under this definition.

Last updated

About Macroeconomics

The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.

Practise Macroeconomics

1,462 free Macroeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.

Exams that ask Economics questions like this

Economics is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.

Related questions