Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It reduces structural unemployment by increasing demand for labor.
B
It increases structural unemployment by creating wage floors.
C
It has no effect on structural unemployment.
D
It decreases structural unemployment by decreasing labor supply.
Understanding the Answer
Let's break down why this is correct
Answer
Government intervention can affect structural unemployment by changing the way the labor market works. When the government introduces policies, like job training programs or education subsidies, it helps workers gain the skills needed for available jobs. This can shift the demand for labor to the right, meaning more employers want to hire skilled workers, which can reduce structural unemployment. For example, if a government funds a training program for workers in a declining industry, these workers can learn new skills for a growing industry, leading to more job opportunities. Overall, effective intervention can help match workers' skills with what employers need, making the labor market more efficient.
Detailed Explanation
Government rules, like minimum wage laws, can make it hard for some people to get jobs. Other options are incorrect because Some might think that increasing demand for workers will always help; It's a common belief that government actions don't change unemployment.
Key Concepts
Structural unemployment
Government intervention
Topic
Labor Supply and Demand Graphing
Difficulty
medium level question
Cognitive Level
understand
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