Technological Change in an Industry That Historically Required Specific Labor

question 107

Multiple Choice

Technological change in an industry that historically required specific labor skills will lead to

• A)Frictional unemployment
• B)Structural unemployment
• C)Cyclical unemployment
• D)Seasonal unemployment
• E)No changes in unemployment

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Definitions:

Future Value

The value of an asset or cash at a specified date in the future that is equivalent in value to a specified sum today, often calculating the effects of interest.

Equal Annual Installments

A method of repaying a loan in which the borrower pays the lender the same amount of money each year until the loan, including interest, is fully paid off.

Compounded Monthly

Interest on an investment or loan calculated on a monthly basis, where the interest earned each month is added to the principal, and future interest is based on this new amount.

Corporate Bond Fund

A corporate bond fund is an investment fund that focuses on investing in the corporate debt securities of varying credit ratings and maturities.