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A worker whose factory closed permanently and whose skills no longer match available jobs is an example of:
ACyclical unemployment
BVoluntary unemployment
CStructural unemployment
DFrictional unemployment
Answer & Solution
Correct answer: C. Structural unemployment
1. The mismatch between skills and jobs is the key detail.
2. Frictional unemployment is the gap while moving between jobs.
3. Cyclical unemployment tracks expansion and recession.
4. Structural unemployment is named as a factor influencing the natural rate.
5. A permanent skills mismatch is structural rather than temporary or cyclical.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 7 'Unemployment'_
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