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A teenager is not able to find a job because the legal minimum wage is higher than the wage that firms are willing to offer. This situation is an example of:

A) Structural unemployment
B) Cyclical unemployment
C) Frictional unemployment
D) Efficiency wages

User Omegacore
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2 Answers

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Answer: Efficiency Wages

Explanation:employer must pay its workers high enough so that workers are incentivized to be productive and that highly skilled workers do not quit

User BenjyTec
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Final answer:

A teenager unable to find work due to minimum wage laws is facing structural unemployment, which arises from mismatches in the labor market.

Step-by-step explanation:

A teenager not being able to find a job because the legal minimum wage is higher than the wage that firms are willing to offer is an example of structural unemployment. This kind of unemployment occurs when there is a disconnect between the skills that workers have and the skills needed for the available jobs, or due to inflexibilities in the labor market such as high minimum wages that prevent firms from hiring at lower wages. This can also happen because of technological changes, geographic factors, or sudden shifts in the market demand.

User Roman Frolov
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