Economics 9708 · AS & A Level · Long-run costs and economies of scale

Long-run costs and economies of scale — practice question

Young workers find it particularly hard to obtain employment during an economic recession. A government provides a transfer payment for people who are looking for work and gives information about vacancies. What would be a beneficial effect of this policy for people looking for work?

  • AFirms no longer need to advertise jobs because there are few vacancies.
  • BNo production of goods or services is required for a transfer payment.
  • CObtaining information on jobs available makes the labour market more perfect.
  • DStudents will leave their studies to join the workforce at an earlier age.

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