Define and give an example of how a spell of structural ...

[WWatsford]

Define and give an example of how a spell of structural unemployment can begin.
 
  What will be an ideal response?

Question 2

I'd rather have 100 now than wait for 100 six months from now. This person
 
  A) displays a negative rate of time preference.
  B) displays a positive rate of time preference.
  C) displays a zero rate of time preference.
  D) displays irrational behavior because the money will be more valuable later.

[bitingbit]

Answer to Question 1

Structural unemployment arises when changes in technology or international competition changes the skills necessary for jobs or change the location of jobs. For instance, technological change, such as the invention of the personal computer, can switch the skills needed for jobs, say from the ability to repair typewriters to the ability to repair computers. In this case, the people who lose their jobs and do not have the necessary skills to perform the new jobs are structurally unemployed. In addition, there are times when foreign competition causes large downscaling in sectors of the U.S. economy as U.S. firms find that they cannot compete with foreign firms. In this case, the U.S. workers who lose their jobs do not go overseas to take jobs in the expanding foreign companies, so the workers are structurally unemployed.

Answer to Question 2

B