QQuestionEconomics
QuestionEconomics
"Which of the following is an example of cyclical unemployment?
A. Workers in the tourism industry in Maine are laid off during the winter.
B. A worker moves to California and searches for a new job.
C. During a recession, aircraft assemblers are laid off but expect to be recalled as the economy improves.
D. Due to technological change, typewriter workers lose jobs and must retrain to find jobs in other industries."
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Answer
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Step 1: Identify the options that represent cyclical unemployment.
Cyclical unemployment is a type of unemployment that occurs due to the business cycle, that is, the ups and downs of the economy. It happens when there is a downturn in the economy, leading to layoffs and reduced hiring. However, as the economy improves, these workers are often rehired.
Step 2: Analyze each option.
A. Workers in the tourism industry in Maine are laid off during the winter. - This is an example of seasonal unemployment, which occurs regularly during certain times of the year. It is not cyclical unemployment. B. A worker moves to California and searches for a new job. - This is an example of frictional unemployment, which occurs when people are temporarily out of work while transitioning between jobs. It is not cyclical unemployment. C. During a recession, aircraft assemblers are laid off but expect to be recalled as the economy improves. - This is an example of cyclical unemployment, as it is directly related to the business cycle and the expectation is that these workers will be rehired once the economy improves. D. Due to technological change, typewriter workers lose jobs and must retrain to find jobs in other industries. - This is an example of structural unemployment, which occurs when there is a mismatch between the skills that workers have and the skills that employers need. It is not cyclical unemployment.
Final Answer
The correct answer is option C. This is an example of cyclical unemployment, as it is directly related to the business cycle and the expectation is that these workers will be rehired once the economy improves.
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