New technology has made most of the jobs workers do at a particular factory obsolete, and they are laid off. Which type of unemployment are they experiencing?
A.) Structural
B.) Casual
C.) Frictional
D.) Cyclical *
Can someone check this?
Also this one:
Which type of investment are stocks?
A.) Lending
B.) Ownership
C.) Cash equivalent
D.) Interest *
The type of unemployment that the workers are experiencing in this scenario is structural unemployment. Structural unemployment occurs when technological advancements or shifts in the economy render certain skills or industries obsolete, leading to a permanent decrease in demand for certain types of jobs.
To determine the type of unemployment the workers are experiencing, let's go through each option:
A) Structural unemployment: This type of unemployment occurs when there is a mismatch between the skills held by workers and the skills demanded by available jobs. In this scenario, if the workers' skills are no longer required due to technological advancements, it could be considered structural unemployment. So option A is a possible choice.
B) Casual unemployment: Casual unemployment refers to temporary or occasional unemployment due to factors like seasonal work or irregular work patterns. As the scenario states that the workers are laid off due to technological advancements, it is unlikely to be casual unemployment. Thus, option B is not the correct choice.
C) Frictional unemployment: Frictional unemployment occurs when workers are in between jobs. They may have voluntarily left their previous jobs and are currently searching for new employment. However, in this scenario, where workers are laid off due to technology, it is not frictional unemployment. Therefore, option C is not the correct choice.
D) Cyclical unemployment: Cyclical unemployment is caused by fluctuations in the business cycle. It occurs during economic downturns or recessions when demand for goods and services decreases, leading to layoffs. As the scenario does not mention the economic conditions or fluctuations, it is unlikely to be cyclical unemployment. Therefore, option D is not the correct choice.
After evaluating the options, the most appropriate answer would be A) Structural unemployment since the workers' jobs have become obsolete due to technological advancements.
It's always a good idea to double-check information or seek additional resources to verify the answer.