McqMate
| Q. |
Structural unemployment arises due to : |
| A. | deflationary conditions |
| B. | heavy industry bias |
| C. | shortage of raw materials |
| D. | inadequate productive capacity |
| Answer» D. inadequate productive capacity | |
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Explanation: Structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Structural unemployment is a result of the dynamics of the labor market, such as agricultural workers being displaced by mechanized agriculture. unskilled laborers displaced by both mechanization and automation, or industries with declining employment. Many of these displaced workers are "left behind" due to costs of training and moving (e.g., the cost of selling one's house in a depressed local economy), inefficiencies in the labor markets, such as discrimination or monopoly power, or because they are unsuited for work in growing sectors such as health care or high technology. |
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