Structural Unemployment Occurs When

question 11

Multiple Choice

Structural unemployment occurs when

• A)Workers do not have the skills required to fill the vacant positions in the job market.
• B)Firms fail in the normal course of business activity.
• C)An industry experiences a seasonal downturn.
• D)There is inadequate demand for labor.

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Definitions:

Utility

In economics, the satisfaction or benefit derived by consuming a product or service; a measure of preferences over some set of goods and services.

Budget Line

A graphical representation of all possible combinations of two goods that an individual can afford with a given income and prices.

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in production theory.

Consumer Theory

A branch of microeconomics that studies how people decide what to spend their money on based on their preferences and budget constraints.