PRC-3 · Chapter 18 · Question 5 of 33
A massive shift towards digital media permanently closes down hundreds of traditional newspaper printing presses. The press operators cannot find new jobs because they lack the IT skills required by modern companies. This is an example of:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Structural unemployment
Explanation
Structural unemployment occurs when there is a fundamental mismatch between the skills possessed by workers and the skills demanded by a changing, modernizing economy.
More Inflation and Unemployment MCQs
- Q7The A.W. Phillips curve illustrates a famous, short-run economic trade-off. According to this traditional theory, if a government uses…
- Q8A worker is employed at a ski resort in the mountains. During the summer, there is no snow and the resort closes, leaving the worker…
- Q9To precisely track inflation, government statisticians select a typical 'basket' of hundreds of goods and services bought by an average…
- Q10A powerful labor union forces management to increase wages by 20% without any corresponding increase in labor productivity. How does this…
- Q11A government desperately prints massive amounts of new currency to fund its spending. With too much money circulating, consumer demand…
