Consider the following scenarios and classify the type of un

Consider the following scenarios and classify the type of unemployment.

a. A fast food worker quits his job to look for a job as an engineer.

b. The invention of cassette tapes leads to the closure of firms engaged in vinyl record production.

c. Ferry boat operators are laid off each year while the lake is frozen.

Solution

a. Frictional unemployment.

b. Structural unemployment.

c. Cyclical unemployment.