Suppose that in PetroLand the oil fields in the western region suddenly stop producing,causing oil companies to shift activities to their fields in the eastern region.This is bound to cause some ________ unemployment in the western region of the country's economy.

Question

Quizplus · Accepted Answer

The shifting of activities from the western to eastern region would result in a long-term change in the economy's structure, leading to structural unemployment in the western region. This is because the skills and expertise required to work in the eastern region's oil fields might not match those of the workers in the western region who are now without work. Cyclical unemployment occurs due to business cycle fluctuations, efficiency-wage unemployment occurs when employers set wages above the equilibrium level, frictional unemployment occurs due to the time lag between individuals searching for a job and getting employed, and voluntary unemployment occurs when individuals choose not to work despite available job opportunities. These do not apply to the scenario provided.

Suppose That in PetroLand the Oil Fields in the Western