A firm might pay an efficiency wage if it (A) wanted to lower worker productivity (B) wanted to decrease absenteeism and turnover (C) wanted to decrease hours worked (D) wanted to increase waste and inefficiency (E) wanted workers to seek alternative jobs 9. The natural rate of unemployment is the level of unemployment (A) at the trough of a recession (B) where structural unemployment is zero (C) when the unemployment rate is zero (D) where cyclical unemployment is zero (E) where frictional unemployment is zero 10. The natural rate of unemployment is equal to (A) zero unemployment (B) frictional unemployment plus structural unemployment plus cyclical unemployment (C) frictional unemployment (D) structural unemployment (E) frictional unemployment plus structural unemployment 11. When the economy is operating at full employment, the unemployment rate is (A) equal to the rate of cyclical unemployment (B) zero (C) equal to rate of frictional plus structural unemployment (D) equal to the rate of frictional unemployment (E) equal to the rate of structural unemployment 12, A binding minimum wage can lead to (A) cyclical unemployment (B) structural unemployment (C) full employment (D) frictional unemployment (E) zero unemployment 13. Suppose a labor union successfully negotiates a wage that exceeds the market equilibrium wage. This contract may _the level of _unemployment. (A) Increase; structural (B) Decrease; frictional (C) Increase cyclical (D) Decrease; natural rate (E) Decrease; cyclical