Q

QuestionEconomics

Structural unemployment occurs when there is a mismatch between workers' skills and the requirements of available jobs in the economy. This type of unemployment is caused by fundamental shifts in the economy, such as technological changes, industrial restructuring, or long-term changes in economic conditions.

Option A: A large fire burns down an automotive plant in Detroit, forcing the employees temporarily out of work. - This is an example of cyclical unemployment, not structural unemployment. - The unemployment is temporary and due to a specific event (plant fire). - Workers are expected to return to work once the plant is rebuilt. Option B: Three sales associates from Target are fired after stealing merchandise from the electronics department. - This is an example of frictional unemployment. - The unemployment is due to individual misconduct, not a systemic economic issue. - These workers were fired for specific reasons unrelated to broader economic structures. Option C: John quits his job after getting accepted into law school. - This is an example of frictional unemployment. - John is voluntarily leaving his job to pursue further education. - This is a personal career transition, not a structural economic change. Option D: Though many companies are hiring in Seattle, Washington, unemployment is high in Tennessee. - This is a classic example of structural unemployment. - There is a geographic mismatch between job availability and workers. - Workers in Tennessee lack the ability (or willingness) to move to where jobs are available. - The underlying economic structures and job markets differ between the two states.

The correct answer is D. This scenario demonstrates structural unemployment because: - There are jobs available in one location (Seattle) - Workers in another location (Tennessee) remain unemployed - The unemployment is caused by a fundamental mismatch in economic structures and worker mobility