Suppose the country of Tiny Town decided to open its borders to free trade. As a result, a number of its workers lost their jobs to international competition and can't find new jobs because their skills don't match what is required for job openings. The workers who lost their jobs would best be considered part of
A) structural unemployment
B) discouraged workers.
C) cyclical unemployment.
D) frictional unemployment.

Question

Quizplus · Accepted Answer

The workers who lost their jobs due to the opening of borders to free trade are part of structural unemployment. Structural unemployment refers to unemployment that occurs due to changes in the structure of the economy, such as technological changes or shifts in consumer demand, which lead to changes in the types of skills that are needed in the labor market. In this case, the international competition caused by the opening of borders resulted in a change in the types of skills that were in demand, leading to unemployment for those workers whose skills did not match the new requirements.

Suppose the Country of Tiny Town Decided to Open Its