Question:
Structural unemployment is best described as unemployment caused by:
(1) A general downturn in the economy (recession).
(2) People voluntarily leaving jobs to find better ones.
(3) Seasonal changes in demand for labor.
(4) A mismatch between the skills of workers and the requirements of jobs.
(5) Minimum wage laws set above equilibrium.
Correct Answer:
(4)
Answer Explanation:
Structural unemployment happens when the structure of the economy changes (e.g., tech replaces manual labor), leaving workers with skills that are no longer in demand. It is long-term and harder to fix than cyclical unemployment.
Topic: Unemployment Year: 2024
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