If firms pay what are called efficiency wages, they pay wages that
A) are lower than average to ensure maximum profit.
B) are mandated by the government.
C) will eventually lower the unemployment rate.
D) motivate workers to increase their productivity.
Question 2
Evidence shows that for many people, delaying searching for a job for a year or longer after they are laid off will contribute to a deterioration of their job skills, making it harder for them to find employment.
This deterioration in job skills and the subsequent retraining that is necessary to obtain employment relates to which type of unemployment?
A) seasonal B) structural C) cyclical D) frictional
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