Question

Choose the correct statements.

1. The unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or change the locations of jobs is frictional unemployment.

2. Structural unemployment usually lasts longer than frictional unemployment. nothing

3. The unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or change the locations of jobs is structural unemployment.

4. The fluctuating unemployment over the business cycle is structural unemployment. nothing

A.Statements 1 and 4 are correct.
B.Statements 3 and 4 are correct.
C.Statements 1 and 3 are correct.
D.Statements 2 and 3 are correct.

Answer 1

Structural unemployment arises due to a mismatch between workers' skills or locations and job requirements, and it lasts longer than frictional unemployment. Frictional unemployment occurs as workers transition between jobs. Thus, the correct answer to the statements about unemployment types is D. Statements 2 and 3 are correct.

Step-by-step explanation:

To correctly identify the statements related to types of unemployment, we need to understand what each term means. Frictional unemployment occurs as workers move between jobs, such as finding out about new jobs, interviewing, or relocating closer to a new job. It is generally a short-term form of unemployment. On the other hand, structural unemployment is a result of a deeper mismatch between the jobs available and the skills or locations of the workers. This can be due to technological changes, geographic factors, or educational deficiencies. It usually lasts longer because the workers may need to gain new skills or relocate to where jobs are available. Finally, unemployment that varies with the business cycle is known as cyclical unemployment, which fluctuates with economic upturns and downturns.

With these definitions in mind, the correct statements are:

1. The unemployment that arises when changes in technology or international competition change the skills needed to perform jobs or change the locations of jobs is structural unemployment. So, statement 1 is incorrect, and statement 3 is correct.
2. Since structural unemployment involves a deeper mismatch in the labor market, it usually lasts longer than frictional unemployment, making statement 2 correct.
3. The fluctuating unemployment over the business cycle, which is cyclical unemployment, is not the same as structural unemployment, thus statement 4 is incorrect.

Therefore, the correct answer is D. Statements 2 and 3 are correct.