Final answer:
The non-durable consumer goods industry would be least affected by a recession since products like food and clothing are always in demand. Durable consumer goods, capital goods, and labor-intensive goods are more vulnerable to economic downturns, as consumer spending usually decreases. The correct option is A.
Step-by-step explanation:
Production and employment would be least affected by a severe recession in the industry of non-durable consumer goods (A). These goods, such as food and clothing, are short-lived and are constantly in demand regardless of the economy's state, because they meet essential consumer needs.
In contrast, durable consumer goods (B), capital goods (C), and goods requiring significant labor input for production (D) tend to be more susceptible to economic downturns, as demand for these items declines when consumers and businesses cut back on spending.
Understanding the types of unemployment is key to explaining the effects of recessions on various sectors. Cyclical unemployment is directly related to the rise and fall of the economic cycle, which results in landscapers being laid off due to less construction during a recession. Structural unemployment occurs when industries decline due to external changes, like coal miners losing jobs because of new EPA regulations.
Lastly, frictional unemployment covers situations such as a financial analyst moving between states, which is a voluntary and often short-term employment gap.