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 canʹt find new jobs because their skills donʹt match what is required for job openings. The workers who lost their jobs and searched for new ones are best be considered part of
A) cyclical unemployment.
B) frictional unemployment.
C) structural unemployment
D) discouraged workers.

Question

Quizplus · Accepted Answer

The scenario describes workers losing their jobs due to a shift in the economy (opening of borders to free trade), and being unable to find new jobs due to a mismatch in their skills with available job openings. This is an example of structural unemployment, where there is a mismatch between the skills of workers and the requirements of available jobs.

Suppose the Country of Tiny Town Decided to Open Its