All of the following cause structural unemployment EXCEPT:
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

Granting Social Security benefits to laid-off workers does not cause structural unemployment; it is a form of financial support for those who are unemployed. Structural unemployment is caused by factors like wage floors, collective bargaining, and efficiency wages that create a mismatch between the skills of workers and the needs of employers.

All of the Following Cause Structural Unemployment EXCEPT