Bill is a high-school dropout who lost his job in a fast food restaurant when the economy plunged into a recession. After 8 months, Bill is still looking for work. He is an example of
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) the natural unemployment rate.
Question 2
The price elasticity of demand for cigarettes is 0.4. If government wants to reduce smoking by 10 percent, by how much should it raise the price of cigarettes by imposing a tax?
A) by 10 percent
B) by 20 percent
C) by 25 percent
D) by 50 percent
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