Structural unemployment results when
A) a reduction in consumer income reduces demand for products.
B) individuals enter the labor market in June following graduation.
C) workers face layoffs following a decrease in economic activity.
D) the introduction of a product substitute leads to a large decline in the market demand for a product so that workers specializing in the production of that product find themselves out of work.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a decline in the demand for a certain type of labor due to changes in the structure of the economy. In this case, the introduction of a product substitute leads to a large decline in the market demand for a product, which results in workers specializing in the production of that product finding themselves out of work. This is a structural change in the economy that has led to structural unemployment.

Structural Unemployment Results When