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Multiple Choice
When the economy is performing poorly, which of the following types of workers is most likely to be affected by unemployment?
A
Government employees
B
Tenured university professors
C
Highly specialized professionals
D
Low-skilled workers
Verified step by step guidance
1
Understand the concept of cyclical unemployment, which occurs when the economy is performing poorly and overall demand for labor decreases.
Recognize that during economic downturns, employers tend to reduce their workforce starting with the most vulnerable groups, often those with lower skills or less job security.
Analyze the job security and demand for each worker type: government employees and tenured professors usually have strong job protection, while highly specialized professionals often have skills that remain in demand.
Identify that low-skilled workers typically have less job security and are more easily replaced, making them the most likely to be affected by unemployment during poor economic conditions.
Conclude that low-skilled workers face higher unemployment risk in a weak economy due to their lower bargaining power and the ease with which employers can substitute or lay them off.