Questions: Multiple Choice Question An auto worker in Michigan who loses her job because the company relocated the plant to another country is an example of: seasonal unemployment frictional unemployment cyclical unemployment structural unemployment

The answer is: structural unemployment.

Explanation for each option:

1. Seasonal unemployment: This type of unemployment occurs when people are out of work because their jobs are only available during certain seasons of the year. For example, agricultural workers may be unemployed during the off-season. This does not apply to the auto worker in Michigan, as her job loss is not related to seasonal changes.

2. Frictional unemployment: This type of unemployment happens when people are temporarily between jobs or are searching for new jobs. It is usually short-term and voluntary. The auto worker in Michigan did not lose her job because she is between jobs or searching for a new one; her job was relocated.

3. Cyclical unemployment: This type of unemployment is related to the economic cycle. It occurs during periods of economic downturns or recessions when there is a lack of demand for goods and services. The auto worker's job loss is not directly tied to an economic downturn but to the relocation of the plant.

4. Structural unemployment: This type of unemployment occurs when there is a mismatch between the skills of the workers and the needs of the employers, often due to technological changes, globalization, or other shifts in the economy. In this case, the auto worker in Michigan lost her job because the company relocated the plant to another country, which is a structural change in the economy.

Therefore, the correct answer is structural unemployment.