Type of Unemployment

CFA Level I
#1

X worked for a food plant. In a move to reduce costs, the plant automated the production line where X worked. X was laid off becoz he was not adequately trained to work the new equipment. Y worked in the oldest of twenty coal mines in her area. Low energy prices made the mine uneconomic, and she was laid off along with all the other miners. Identify which type of unemployment is illustrated… X Y Frictional Cyclical Frictional Frictional Structural Cyclical Frictional Frictional

#2

c

#3

C

#4

C

#5

all the answers were given at the same time… check out the time they were posted… lol… we have so much time

#6

if the general food industry was doing the same, structural energy prices will recover, cyclical

#7

C

#8

even i put C but the schweser book is saying D…you think schweser is wrong??? Also the D option is X Y Structural Frictional Sorry about the mistake but either way I think it is C… explaination for D is… Unemployment due to lacking the necessary skills for a changing job market is called structural unemployment. Y will probable be able to get a job at another mine. THere was no broad economic downturn, she needs to change locations… I dont understand this explaination…

#9

C

#10

cfaiscomplex Wrote: ------------------------------------------------------- > even i put C but the schweser book is saying > D…you think schweser is wrong??? > > D is wrong, it has to be C

#11

I agree with the D reply. Mining is a unique industry, so this is a very unfair question. MInes are depleted and everyone who works at a given mine will eventually be layed off. They experience frictional unemployment when moving to a new mine to work… very very unfair questions, but D is correct.

#12

mcf Wrote: ------------------------------------------------------- > I agree with the D reply. Mining is a unique > industry, so this is a very unfair question. > MInes are depleted and everyone who works at a > given mine will eventually be layed off. They > experience frictional unemployment when moving to > a new mine to work… very very unfair > questions, but D is correct. Also the D option is X Y Structural Frictional ============================= as long as the first part is structural i am happy. god dam%, mining a “unique” industry??? is that in the CFAI book, i did not see that!!!

#13

it’s not in the text, but I’ve covered some mining names and can easily see what they were driving towards. CFA texts frequently mention but never fully explain unique issues with natural resource companies.