QQuestionEconomics
QuestionEconomics
Which of the following is an example of cyclical unemployment?
A. In an economic downturn, a manufacturing plant reduces production and temporarily lays off workers.
B. Due to technological change, typewriter workers lose jobs and must retrain to find jobs in other industries.
C. A student graduates from college and searches for a first job.
D. Workers at ski resorts in Colorado are laid off during the summer.
4 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1
The concept of cyclical unemployment refers to the type of unemployment that occurs due to the ups and downs of the business cycle. It's essentially a form of involuntary unemployment that results from the overall economic situation.
Step 2
Let's examine each of the given options in light of this definition: A. In an economic downturn, a manufacturing plant reduces production and temporarily lays off workers. When the economy is in a downturn, businesses often experience reduced demand for their products, which can lead to temporary layoffs. These layoffs are typically not due to any fault of the workers, and the workers would prefer to be employed. This is an example of cyclical unemployment.
Final Answer
B. Due to technological change, typewriter workers lose jobs and must retrain to find jobs in other industries. This scenario represents structural unemployment, which is a different type of unemployment caused by changes in technology, industry, or economy that result in a mismatch between the skills that workers offer and the skills that employers demand. C. A student graduates from college and searches for a first job. This situation represents frictional unemployment, which occurs when workers are transitioning between jobs or entering the labor force for the first time. It is a normal feature of a well-functioning labor market and is not directly related to the business cycle. D. Workers at ski resorts in Colorado are laid off during the summer. This is also an example of seasonal unemployment, which occurs when jobs are lost due to seasonal fluctuations in demand. This type of unemployment is not directly related to the business cycle either. Therefore, none of the options B, C, or D represent cyclical unemployment.
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students