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 and searched for new ones are best be considered part of
A) frictional unemployment.
B) structural unemployment
C) cyclical unemployment.
D) discouraged workers.

Question

Quizplus · Accepted Answer

The workers who lost their jobs due to international competition and cannot find new jobs because their skills do not match the current job market are considered part of structural unemployment. This type of unemployment occurs when there is a mismatch between the skills of the workforce and the skills demanded by employers.

Suppose the Country of Tiny Town Decided to Open Its