Classify Each of the Following Cases as Frictional,structural,or Cyclical Unemployment

question 134

Essay

Classify each of the following cases as frictional,structural,or cyclical unemployment.
(a)John graduated from college and is currently looking for a job.
(b)A farmer lost his job because the area he lives in was transformed into a highly industrialized zone.
(c)Eliot works in the automobile industry in Windsor.He lost his job because cheaper imported cars have poured over the border from Japan.
(d)Mrs.Dunkin finished raising her children and decided to look for a job.
(e)Elizabeth lost her job because the company she used to work in merged with another company.
(f)David,who is a restaurant manager,lost his job because of a recession.

---

Definitions:

Complementary Goods

Products or services that are used together, where the increase in demand for one leads to an increase in demand for the other.

Luxury Goods

High-value products that are not necessary for basic needs and are often considered a sign of wealth or status.

Price Elastic

Describes how sensitive the demand for a good is to changes in its price; a high elasticity means demand is greatly affected by price changes.

Principal-Agent Problem

A dilemma in economics and organizational theory where one party (the agent) is expected to act in the best interest of another (the principal) but may have personal interests that conflict.