Suppose the Country of Tiny Town Decided to Open Its

question 283

Multiple Choice

Suppose the country of Tiny Town decided to open its borders to free trade. As a result, a number of its workers lost their jobs to international competition and canʹt find new jobs because their skills donʹt match what is required for job openings. The workers who lost their jobs and searched for new ones are best be considered part of

• A) cyclical unemployment.
• B) frictional unemployment.
• C) structural unemployment
• D) discouraged workers.

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Definitions:

Ignores Costs

A term referring to the practice or scenario where financial expenditures or implications are not taken into consideration.

Supply and Demand Conditions

The economic model that determines the price of goods in a market, based on the availability of the goods (supply) and the desire for them (demand).

Initial Solution

The first proposed resolution or approach to solving a problem, often used as a starting point for further refinement in optimization problems.

Northwest Corner Allocation

A method used in operations research to solve transportation problems, starting allocations from the northwest corner of a cost matrix and working through to optimize transportation costs.