Question

18. A manufacturing worker who is laid off due to his company moving their manufacturing operation overseas. This worker is classified as: A. frictionally unemployed. B. underemployed. C. cyclically unemployed. D. structurally unemployed. 19. Which of the following statements is correct? A. Unemployment insurance compensation encourages shorter job searches, which may lead to a better match between jobs and employees. B. Demand and supply curves for labor are relatively static. C. The typical employment insurance compensation is roughly one fifth of one's latest salary for up to 40 weeks. D. Unemployment insurance compensation decreases the opportunity cost of being unemployed. ...:1:... vonulation of 28 107 non.

Answer 1

18) option d is correct. There is no recession in the economy which means there is no cyclical unemployment. There is no unemployment due to market friction of job matching due to which there is no frictional unemployment. however the person is not getting employment because his employer is now outsourcing the same work due to structural changes in the economy. He is structurally unemployed

19) option d is correct. Unemployment insurance basically provides a compensation for being unemployed for a particular time period. In this manner it discourages the unemployed to look for a job and reduces the opportunity cost of being unemployed.