Asked by Amber Glenn on Jun 28, 2024
Verified
_____ results from shifts in the demand for goods and services or changes in technology in the economy.
A) Structural unemployment
B) Frictional unemployment
C) Cyclical unemployment
D) None of the choices are correct
Structural Unemployment
Refers to unemployment caused by structural changes in the economy such as technological advances, which create mismatches between the skills workers have and the skills needed for available jobs.
Demand Shifts
Demand shifts occur when the overall demand for a product or service increases or decreases due to changes in consumer preferences, income levels, prices of related goods, and other factors.
Technology Changes
The process of innovation and improvement in technology, affecting productivity, efficiency, and society's overall way of life.
- Absorb the fundamentals of structural unemployment and its underlying reasons.
Verified Answer
HS
Harbir SharmaJul 02, 2024
Final Answer :
A
Explanation :
Structural unemployment results from shifts in demand or changes in technology in the economy that make certain skills or jobs obsolete, leaving workers without necessary skills and without job prospects. This is different from frictional unemployment, which is due to temporary transitions or skills mismatch between workers and jobs, and cyclical unemployment, which is due to fluctuations in the business cycle.
Learning Objectives
- Absorb the fundamentals of structural unemployment and its underlying reasons.