When ecess production results in loss leading to retrenchment of workers in a particular firm,we...
When ecess production results in loss leading to retrenchment of workers in a particular firm,we have _____ unemployment
- A) structural
- B) residual
- C) voluntary
- D) cyclical
Correct Answer: D) cyclical
Explanation
This question is asking about the type of unemployment that occurs when a company produces too much and experiences losses, causing them to lay off workers. The options given are structural, residual, voluntary, and cyclical.
Structural unemployment occurs when a worker's skills no longer match the needs of the job market. Residual unemployment is a term used to describe the unemployment that remains even when the economy is at full employment. Voluntary unemployment is when a person chooses not to work.
The correct answer in this case is D, cyclical unemployment. This type of unemployment is caused by fluctuations in the business cycle. When the economy is in a recession, companies produce less and may lay off workers, resulting in cyclical unemployment.
It is important to note that unemployment can have a significant impact on individuals and the economy as a whole. High levels of unemployment can lead to decreased consumer spending and economic growth. To learn more about unemployment and its impact, please see the relevant sections of the recommended textbooks.