Q
QuestionEconomics

Which of the following is an example of structural unemployment? A. A large fire burns down an automotive plant in Detroit, forcing the employees temporarily out of work. B. Three sales associates from Target are fired after stealing merchandise from the electronics department. C. John quits his job after getting accepted into law school. D. Though many companies are hiring in Seattle, Washington, unemployment is high in Tennessee.
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Step 1
I'll solve this problem step by step, focusing on the concept of structural unemployment.

Step 2
: Define Structural Unemployment

Structural unemployment occurs when there is a mismatch between workers' skills and the requirements of available jobs in the economy. This type of unemployment is caused by fundamental shifts in the economy, such as technological changes, industrial restructuring, or long-term changes in economic conditions.

Final Answer

Key Insights: - Structural unemployment results from fundamental economic mismatches - It differs from cyclical or frictional unemployment - Geographic, skill, or industrial barriers contribute to structural unemployment