What kind of unemployment occurs as labor and capital shift from one sector of the economy to another?
A) seasonal unemployment
B) frictional unemployment
C) structural unemployment
D) cyclical unemployment
E) unintentional unemployment

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of workers and the requirements of employers, such as when labor and capital shift from one sector to another. This type of unemployment is long-term and can persist even when the overall economy is doing well. Seasonal unemployment, on the other hand, occurs when certain industries or jobs are only available at certain times of the year. Frictional unemployment is the result of workers who are in between jobs or seeking better employment opportunities. Cyclical unemployment is related to the business cycle and occurs as a result of economic downturns. Unintentional unemployment is not a recognized category of unemployment.

What Kind of Unemployment Occurs as Labor and Capital Shift