Structural unemployment CANNOT be caused by:
A) a government-mandated floor on the price of labor set above the equilibrium wage.
B) collective bargaining efforts that secure higher wages for unionized workers than for nonunionized workers.
C) offering high wages to attract high-quality workers.
D) granting Social Security benefits to laid-off workers.

Question

Quizplus · Accepted Answer

Social Security benefits do not directly affect the supply and demand of labor in the market, and therefore cannot cause structural unemployment. Choices A, B, and C all involve factors that can lead to a mismatch between labor supply and demand, and ultimately contribute to structural unemployment.

Structural Unemployment CANNOT Be Caused By