Unskilled workers facing limited opportunities in one region that desire but cannot afford to move to another region where work opportunities are good are in a labor market characterized by
A) market failure due to price distortion.
B) market failure due to a transaction barrier.
C) Pareto efficiency.
D) market failure due to ignorance.

Question

Quizplus · Accepted Answer

The situation described in the question is an example of a transaction barrier, which is a type of market failure where there are costs or obstacles that prevent parties from engaging in mutually beneficial exchanges. In this case, the unskilled workers are facing barriers to moving to another region where work opportunities are good, such as lack of information, lack of financial resources, or other barriers. This hinders their ability to engage in labor market transactions, resulting in limited job opportunities and loss of potential economic gains.

Unskilled Workers Facing Limited Opportunities in One Region That Desire