|
E Question 1
|
⏱ 0 |
Read the following passage and answer the items that follow. Your answers to these items should be based on the passage only. Passage 1 Structural unemployment arises from mismatches between job availability and workers’ skills or locations, persisting even during economic booms. Technological change is a key driver, often shifting demand for certain skills. Gradual changes may not cause unemployment, as natural attrition adjusts the workforce. However, rapid shifts can displace workers who lack the skills for new roles. The extent of structural unemployment depends on resources allocated for retraining, relocation, or retirement. Other factors, like capital movement, also play a role. Increased structural unemployment complicates balancing low inflation and low unemployment. As demand rises, skill shortages inflate wages and prices, contributing to stagflation, simultaneous inflation and unemployment. While policies have focused on curbing inflation, they often increase unemployment. This highlights a philosophical tension: ensuring economic efficiency through modernization while protecting displaced workers through proactive public and private intervention. 61.The "philosophical tension" highlighted by the author assumes that: (a)Modernization processes inherently prioritize economic efficiency to the absolute exclusion of any consideration for worker welfare. (b)Proactive public and private interventions aimed at protecting displaced workers hinder or slow down the pace of economic modernization. (c)The current policy focus on curbing inflation is a direct result of prioritizing worker protection over economic efficiency. (d)Economic efficiency via modernization and worker protection are potentially conflicting and require a deliberate balancing act. |
|