Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

Assume that workers in these two industries require similar amounts of training, and they can choose which industry to train for at the beginning of their careers.

Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing. Assume that workers in these two industries require similar amounts of training, and they can choose which industry to train for at the beginning of their careers. True or False: wages in the auto manufacturing industry would be less than those in the aircra: manufacturing industry. 0 True 0 False Suppose that one clayr the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. This would cause the demand for labor in the auto manufacturing industry to V and the demand for labor in the aircraft manufacturing industry to v . fall Suppose that workers in one industry cannot be quickly retrained for the oth. Iise which of the following accurately describes the effects of the shifts in demand on the equilibrium wages in the two industries? Check all that appiy. D Wages in the auto industry would fall in the short run. D Wages in the aircraft industry would fall in the short run. D Wages in the auto manufacturing industry would be less than those in the aircraft manufacturing industry. Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. This would cause die demand for labor in the auto manufacturing industry to V and the demand for labor in the aircraft manufacturing industry to that workers in one industryr cannot be quickly retrained for the other. . the following accurately describes the effects of the shifts in demand on the equilibrium wages in the two industries? Check all that apply. D Wages in the auto industry would fall in the short run. D Wages in the aircra: industry would fall in the short run. Cl Wages in the auto manufacturing industry would be less than those in die aircraft manufacturing industry. If for some reason wages fail to adjust to the new equilibrium levels as a result of opening up to intemaonal trade, there will he V of workers in the aircraft industry and V of workers in the auto in dustry. neither a shortage nor a surplus .. ry would fall in the short run. a shortage -cl:un'ng industry would be less than those in the aircraft manufacturing industry. a surplus st to the new equilibrium levels as a result of opening up to intemaijonal trade, there will he V of workers in the aircraft industry and V of workers in the auto industry. D Wages in the aircraft industry would fall in the short run. [3 Wages In the auto manufactunng Industryr would be less than those In neither a shortage nor a surplus a surplus there will be If for some reason wages fail to adjust to the new equilibrium levels as a result a V of workers in the aircraft industry and V of workers in the auto industry