Asked by Lourdes Orellana on Jul 08, 2024
Verified
Structural unemployment results when wages are, for some reason, set above the level that brings supply and demand into equilibrium.
Structural Unemployment
A form of unemployment caused by a mismatch between the skills that workers in the economy can offer and the skills demanded by employers.
Supply And Demand Equilibrium
The point at which the quantity of a product demanded by consumers equals the quantity supplied by producers.
- Understand the role of wages in determining labor market equilibrium and unemployment.
Verified Answer
MG
Moura GhaziriJul 12, 2024
Final Answer :
True
Explanation :
Structural unemployment occurs when there is a mismatch between the skills that workers offer and the skills demanded by employers. This can be exacerbated by wages being set above equilibrium, as it discourages hiring and can be a result of various factors, including minimum wage laws, labor union activity, and government policies, rather than just the natural interplay of supply and demand.
Learning Objectives
- Understand the role of wages in determining labor market equilibrium and unemployment.