Suppose that over a period of years the country of Quasiland switched from being an agriculturally-based economy to a technologically-based economy. As a result, many people lost jobs because they lacked the correct skills. As they search for new jobs, these people are part of
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) discouraged workers.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers offer and the skills demanded by employers. This situation in Quasiland, where people lost jobs due to a shift from an agriculturally-based economy to a technologically-based economy, is a classic example of structural unemployment because the jobs that existed before are no longer available or in demand, and the unemployed individuals do not have the necessary skills for the new jobs created by the technological economy.

Suppose That Over a Period of Years the Country of Quasiland