Question

Which cause of poverty would explain why low-skilled workers are hired when the economy is expanding but are the first to be laid off when there is an economic downturn?

A). lack of education
B). location
C). shifts in family structure
D). economic shifts

Answer 1

The correct choice would be (D) economic shifts economic shifts, which include fluctuations in the business cycle, changes in demand for goods and services, and overall economic conditions, often impact the hiring and firing patterns.

Answer 2

The cause of poverty that would explain why low-skilled workers are hired during an economic expansion but are the first to be laid off during an economic downturn is economic shifts (cyclical unemployment).

Step-by-step explanation:

The cause of poverty that would explain why low-skilled workers are hired during an economic expansion but are the first to be laid off during an economic downturn is D) economic shifts.

Economic shifts, or cyclical unemployment, occur as a result of changes in the overall business cycle. During an economic expansion, businesses often experience increased demand for goods and services, leading to increased hiring. Low-skilled workers may be hired to meet this demand. However, during an economic downturn, businesses may face decreased demand and need to cut costs, leading to layoffs, and low-skilled workers are typically the first to be let go due to their lower productivity and skill level.

For example, during the Great Recession, which began in 2008, many businesses faced a decline in sales and revenue, leading to cost-cutting measures such as laying off employees. Low-skilled workers, such as those in industries like manufacturing and construction, were particularly affected as demand for their services decreased.