When would 'structural unemployment' increase?
A)When the economy enters a recession.
B)When the number of individuals who quit their job to find another increases.
C)When discouraged workers drop out of the work force.
D)When workers are replaced by machines and the workers do not have the skills to perform new jobs.

Question

Quizplus · Accepted Answer

Structural unemployment increases when workers are replaced by machines and the workers do not have the skills to perform new jobs. This type of unemployment is caused by changes in the structure of the economy, such as advances in technology or changes in consumer preferences, that make some skills obsolete and create demand for new skills. Options A, B, and C are more related to cyclical or frictional unemployment, which are caused by changes in the business cycle or individual job search behavior.

When Would 'Structural Unemployment' Increase