Suppose that consumers decide to walk to work more frequently and drive cars less.Companies that make walking shoes hire workers,while automobile companies lay off workers.This is an example of
A)frictional unemployment created by sectoral shifts.
B)frictional unemployment created by efficiency wages.
C)structural unemployment created by efficiency wages.
D)structural unemployment created by sectoral shifts.

Question

Quizplus · Accepted Answer

Sectoral shifts occur when there is a change in the demand for goods and services, which can lead to changes in the number of workers needed in different industries. In this case, the increased demand for walking shoes and the decreased demand for cars has led to a shift in the number of workers needed in these industries, resulting in frictional unemployment.

Suppose That Consumers Decide to Walk to Work More Frequently