CIMA BA1 · Chapter 2 · Question 4 of 10
Workers in a region lose their jobs because the local manufacturing industry has been replaced by automated production elsewhere, and their skills are not suited to the new jobs available. This is an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Structural unemployment
Explanation
Structural unemployment arises from long-term changes in the pattern of demand or technology, leaving a mismatch between workers' skills or location and the available jobs. Frictional unemployment is short-term between jobs, cyclical unemployment is caused by a general lack of demand in a downturn and seasonal unemployment follows regular seasonal patterns.
More Macroeconomic policy and the business cycle MCQs
- Q6Which of the following is most likely to be observed during the recession phase of the business (trade) cycle?
- Q7Which of the following is an example of an automatic stabiliser?
- Q8A central bank raises its policy interest rate. Assuming other things remain equal, which of the following is the most likely consequence?
- Q9Which of the following is an example of a supply-side policy?
- Q10The term 'crowding out' in macroeconomics refers to: