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Suppose That Consumers Choose to Smoke Less and Chew Gum

Question 187

Multiple Choice

Suppose that consumers choose to smoke less and chew gum more. Tobacco companies cut back on the number of people they employ while chewing gum manufacturers employ more. This is an example of


A) structural unemployment created by efficiency wages.
B) structural unemployment created by sectoral shifts.
C) frictional unemployment created by efficiency wages.
D) frictional unemployment created by sectoral shifts.

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