The heat loss through the exterior walls of a certain poultry processing plant is estimated to cost the owner $3,000 next year. a salesman from superfiber insulation, inc., has told you, the plant engineer, that he can reduce the heat loss by 80% with the installation of $18,000 worth of superfiber now. if the cost of heat rises by $200 per year (uniform gradient) after the next year and the owner plans to keep the present building for 15 more years, what would you recommend if the interest rate is 10% per year?

The correct answer is B. Structural unemployment.

Structural unemployment is caused by mismatch whereby the skills which are between workers can offer in an economy and the skills which workers demand.

Some major categories of unemployment include classical unemployment, cyclical unemployment, involuntary unemployment and fictional unemployment.

Structural unemployment can be caused by being unable to afford relocation, unable to sell a house, decision not to relocate, having no decision to pursue job training or further education.