ExpertMedium1 markMultiple Choice
ACCA · Question 33 · Syllabus A: The business organisation and its external environment
Structural unemployment occurs when there is a general downturn in economic activity across the whole economy.
Structural unemployment occurs when there is a general downturn in economic activity across the whole economy.
Answer options:
A.
True
B.
False
C.
Only in manufacturing
D.
Only in tech
How to approach this question
Recall the definitions of structural vs cyclical unemployment.
Full Answer
B.False✓ Correct
Structural unemployment happens when the structure of an industry changes (e.g., automation replacing workers). Unemployment caused by a general economic downturn (recession) is called cyclical unemployment.
Common mistakes
Confusing structural and cyclical unemployment.
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