Question

Which of the following situations would be considered cyclical unemployment? Choose one or more: A. A college instructor’s contract is not renewed because more people are taking online classes and the college does not need as many classroom instructors. B. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on by a weak economy. C. A friend wins the lottery and quits working. He says he will never work again. D. A friend is taking a trip around the world while she waits for another job offer. She has been offered six jobs but has not accepted any of them. E. A recent college graduate cannot find a job anywhere, despite excellent qualifications. The news media report that there are not enough jobs to go around in the economy. F. A typewriter repair shop closes, citing lack of business. The owner is quoted as saying, "We haven’t had a customer in weeks. It has something to do with people using computers."

Answer 1

Cyclical unemployment is associated with economic downturns and affects Scenarios B and E. Frictional unemployment involves individuals between jobs or entering the workforce, as in Scenarios C and D. Structural unemployment stems from industry changes, as seen in Scenario F.

Step-by-step explanation:

Unemployment can be categorized into different types based on the reasons that individuals are out of work. Cyclical unemployment occurs due to fluctuations in the economy, such as when businesses lay off employees because of a recession. Scenario B: A worker on the assembly line at Ford laid off due to a drop in car sales brought on by a weak economy, and Scenario E: A recent college graduate cannot find a job, given the media reporting a lack of jobs in the economy, are examples of cyclical unemployment. Conversely, frictional unemployment happens when employees are transitioning between jobs or entering the workforce, and some examples include C: A friend quits his job out of volition or D: A friend is seeking the right job match while traveling. Lastly, structural unemployment arises when jobs are lost due to structural changes in the economy, such as technological advancements, which make certain skills obsolete or shift production overseas, as seen in Scenario F: The closure of a typewriter repair shop because customers are turning to computers.

Answer 2

The correct answers are: B. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on by a weak economy.

E. A recent college graduate cannot find a job anywhere, despite excellent qualifications. The news media report that there are not enough jobs to go around in the economy.esemloe

Step-by-step explanation:

Cyclic unemployment is unemployment that is caused by fluctuations in the economic activity of a country.

Cyclical unemployment depends on the economic cycle that a country's economy is going through at a given time. In stages of recession or crisis, cyclical unemployment increases while in phases of expansion it decreases.

In economic terms, it is said that cyclical unemployment is a fluctuation in the unemployment rate with respect to its natural rate, that is, the unemployment rate that cannot be reduced and is considered normal in an economy.