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      Question

      Structural unemployment exists because service sector

      jobs require skills that agricultural workers lack. This contributes to:Β 
      A Flattening of Lorenz curve Correct Answer Incorrect Answer
      B Widening of Lorenz curve (more inequality) Correct Answer Incorrect Answer
      C Decrease in poverty gap Correct Answer Incorrect Answer
      D Increase in frictional unemployment Correct Answer Incorrect Answer
      E Decrease in disguised unemployment Correct Answer Incorrect Answer

      Solution

      Skill mismatch keeps agricultural workers in low-income jobs while service sector workers earn more β†’ income gap widens β†’ Lorenz curve shifts away from equality.

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