ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Everyone who wants to work has a job
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Approximately 95% of people have a job
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People who have been hunting for a job for a long time
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Everyone who wants to work have full time jobs
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Detailed explanation-1: -Answer and Explanation: The correct answer is: A) At full employment, there is no frictional unemployment; at full capacity, there is no structural unemployment. Full employment is characterized by a state in the economy in which all the labor resources are being used in the most efficient way.
Detailed explanation-2: -Economists estimate that the full employment rate is between 94 and 96 percent (meaning the unemployment rate is from 4 to 6 percent). Some unemployment is inevitable – even healthy.
Detailed explanation-3: -Full employment is the situation where all people who are available and searching for work can find a job at the prevailing remuneration rates and conditions. It does not mean zero unemployment-there are always some who may be temporarily unemployed, as they move from one job to the other or for other reasons.
Detailed explanation-4: -Cyclical unemployment and frictional unemployment.