Consider a Broom Factory That Permanently Closes Because of Foreign

question 10

Multiple Choice

Consider a broom factory that permanently closes because of foreign competition. If the broom factory's workers cannot find new jobs because their skills are no longer marketable, then they are classified as:

• A) seasonally unemployed.
• B) frictionally unemployed.
• C) structurally unemployed.
• D) cyclically unemployed.

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Definitions:

Excise Taxes

Taxes charged on the sale of specific goods and services, such as alcohol and tobacco, often used as a tool for discouraging their consumption.

Sales Taxes

Taxes levied on the sale of goods and services, normally calculated as a percentage of their price.

Marginal Social Benefit

The additional benefit to society as a whole from an increase in the consumption or production of one more unit of a good or service.

Pollution

The introduction of contaminants into the natural environment that cause adverse change, often impacting air, water, and soil quality.