Question

Four types of unemployment exist: Frictional, seasonal, structural, and cyclical. Which of the following is the best example of structural unemployment?

Layla develops skills in pencil-drawing to be a cartoon artist, but discovers that the work is now done digitally

John hates his job, so he quits and searches for another

Frida works as a Santa Claus during Christmas time but gets laid off on January 1st

Archie followed his dream to be an actor but jobs were scarce because of a recent economic contraction.

Which of the following are counted as "employed"?

A ph.D graduate who is working a minimum wage job

A drug dealer who gets paid in cash and does not report any income taxes to the government

A recent college graduate who is looking for a job

A stay-at-home father who does all the household chores

none of the above

Answer 1

Layla develops skills in pencil drawing to be a cartoon artist, but discovers that the work is now done digitally.
(Structural unemployment results from technological change which is what is happening in Layla's case. In all other cases, none of the unemployment is due to technological change.)

A ph.D graduate who is working a minimum wage job.
(This is counted as employed because a ph.D graduate is a part of workforce and when he gets employment, he is counted as employed. Drug dealers can not be considered as employed because he is not legally counted in the employed workforce and thus remain a part of unemployed persons legally. Someone who is looking for a job but does not actually have a job is not employed. A stay-at-home father is not a part of workforce and thus can't be counted as employed.)