WAEC 2016 Economics · Question 12

The type of unemployment that occurs as a result physical or mental disability of labour is known as

Options

  1. A.frictional unemployment
  2. B.structural unemployment
  3. C.cyclical unemployment
  4. D.residual unemployment

Answer: D. residual unemployment

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks for the type of unemployment caused by a worker's physical or mental disability. That is, the cause lies in the worker's personal condition, not in the economy or in changes in industry.

Step 2: Review the types of unemployment

  • Frictional unemployment: Temporary unemployment while workers move between jobs or search for better ones. Example: a graduate waiting for a first job.
  • Structural unemployment: Caused by changes in the structure of the economy, such as new technology or the decline of an industry. Workers' skills no longer match available jobs.
  • Cyclical (demand-deficiency) unemployment: Caused by a downturn or recession in the business cycle, when total demand falls.
  • Residual unemployment: Affects people who are unemployable or hard to employ because of personal factors such as physical or mental disability, old age, or chronic illness. It is sometimes called "hard-core" unemployment.

Step 3: Match the cause to the type A disability is a personal characteristic that makes the person difficult to employ, and it has nothing to do with job-switching, industry change, or the business cycle. This matches residual unemployment.

Step 4: Answer The correct option is D. residual unemployment.

Exam tip: Link each type to a keyword:

  • Frictional → "between jobs"
  • Structural → "skills mismatch / industry change"
  • Cyclical → "recession"
  • Residual → "disability / unemployable"

If you see words like disabled, handicapped, aged, or unfit, think residual.

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