Why is there unemployment even when the economy is at "full employment"?
What will be an ideal response?
There is unemployment even at "full employment" because there always will be unemployment. Unemployment is a natural occurrence in any economy with changes, such as high school or college graduates entering the labor force, or technological advances in one sector, or consumer preferences changing to favor one product over another. Frictional and structural unemployment will always exist. Cyclical unemployment, however, is a different matter. Cyclical unemployment does not seem to have the same degree of inevitability and hence full employment is defined as occurring when cyclical unemployment equals zero.
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Of the following, who gains with a tariff?
A) domestic buyers of the good or service B) the importer of the good or service C) the foreign exporter of the good or service D) the government of the importing nation E) the government of the exporting nation
The ultimate threat of a union is
A) the lockout. B) the President's power granted by the Taft-Hartley Act. C) the unity of spirit of the union membership. D) the strike.