Mexico can produce vine-ripened tomatoes at a lower opportunity cost than firms in the United States.Through trade negotiations, the United States lifted quotas limiting the import of tomatoes from Mexico.Some firms in Florida, in the face of this new competition, had to close their farms and let go their workers.Many of the workers could not find new jobs right away.What type of unemployment describes the workers' situation?

Question

Quizplus · Accepted Answer

The workers' situation is described as structural unemployment because their skills are no longer in demand due to changes in the industry, such as increased competition from Mexico.

Mexico Can Produce Vine-Ripened Tomatoes at a Lower Opportunity Cost