AP Macroeconomics Question 8: Answer and Explanation

Test Information

Use your browser's back button to return to your test results.

Question: 8

3. If global warming raises temperatures so high that snow can never again exist anywhere, snow ski instructors will experience which type of unemployment?

  • A. Structural
  • B. Frictional
  • C. Seasonal
  • D. Institutional
  • E. Cyclical

Correct Answer: A

Explanation:

A Structural employment is when workers have to either move to new industries or learn new skills.

The types of unemployment:

Frictional unemployment occurs as unemployed workers and firms search for the best available worker-job matches. Included in this category are new labor force entrants looking for their first jobs and workers who are temporarily between jobs because they are moving to a new location or occupation in which they will be more productive.

Structural unemployment is the result of a skills mismatch. As voice recognition software is perfected, skilled typists may find themselves out of work. The same was true for blacksmiths skilled at making horseshoes after the advent of the automobile made horse-drawn buggies obsolete. Poorly educated people may find themselves structurally unemployed because they lack marketable skills.

Cyclical unemployment results from downturns in the business cycle. During recessions and depressions, firms are likely