Define and give an example of how a spell of structural unemployment can begin
What will be an ideal response?
Structural unemployment arises when changes in technology or international competition changes the skills necessary for jobs or change the location of jobs. For instance, technological change, such as the invention of the personal computer, can switch the skills needed for jobs, say from the ability to repair typewriters to the ability to repair computers. In this case, the people who lose their jobs and do not have the necessary skills to perform the new jobs are structurally unemployed. In addition, there are times when foreign competition causes large downscaling in sectors of the U.S. economy as U.S. firms find that they cannot compete with foreign firms. In this case, the U.S. workers who lose their jobs do not go overseas to take jobs in the expanding foreign companies, so the workers are structurally unemployed.
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A compensating wage differential is a wage difference attributable to the difference in the marginal productivity of workers
a. True b. False Indicate whether the statement is true or false
The natural rate of unemployment is the rate that prevails when structural, frictional, and seasonal unemployment are all equal to zero, and the only source of unemployment is cyclical unemployment
Indicate whether the statement is true or false
Which of the following is the best example of an item that a "real world" savings account is designed to cover?
A) the monthly payment for the lease of your apartment B) the purchase of the gasoline you use driving back and forth to work C) an unexpected expenditure to repair the transmission of your car D) funds you are setting aside for your retirement years
Which of the following rise during a recession?
a) losses but not unemployment b) unemployment but not losses c) neither losses nor unemployment d) both losses and unemployment