________ unemployment results because workers lack the right skills, while ________ unemployment results when people are temporarily out of work while they are looking for a new job.
A) Cyclical; seasonal
B) Frictional; seasonal
C) Seasonal; structural
D) Cyclical; structural
E) Structural; frictional

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers possess and the skills demanded by employers. Frictional unemployment occurs when individuals are temporarily out of work while they look for a new job. Cyclical unemployment occurs when there is a downturn in the business cycle and overall demand for labor decreases. Seasonal unemployment occurs when the demand for labor varies by season, such as in agricultural or tourism industries. Based on this, the best choice is E, because structural unemployment is caused by a lack of skills, while frictional unemployment is temporary and caused by individuals looking for new jobs.

________ Unemployment Results Because Workers Lack the Right Skills, While