Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:
A) seasonally unemployed.
B) frictionally unemployed.
C) structurally unemployed.
D) cyclically unemployed.

Question

Quizplus · Accepted Answer

The workers in this scenario are facing structural unemployment, which occurs when there is a mismatch between workers' skills and the available jobs. This is due to a long-term change in the economy, such as the rise of foreign competition in this case, that renders certain skills or industries obsolete.

Consider a Broom Factory That Permanently Closes Because of Foreign