Question

No country in the world can produce unlimited number of the goods, the production of goods will be depending on various combination of the factors of production. Based on your opinion, why unemployment occurs in a nation.

please add examples

Answer 1

Answer-As we know that there is a scarcity of resources, which means resources are limited, and every country is not full filled with all required resources for the production of goods and services, the production of good also depends on various combination of factors of production, sometimes the combination for the factor of production does not match, there can be the scarcity of capital in the company, the suitable land for suitable business can also be not available, scarcity of labor is also possible and there can be the less number of entrepreneurs also in the economy. If there is scarcity in the combination of factors of production then automatically it will affect the employment of the economy.

Main reasons why unemployment occurs in a nation are-

1. Technological change causes unemployment in the nation which means if technology change than the labor who is not able to work with new technology will be loose their job.

2.Recession in the economy leads to increase the unemployment level in the economy .

Example -Covid 19 virus is current and very logical example for the current situation because due fall in demand in the goods and services by the consumers in fear of spread of corona virus the demand of the goods and services collapse which forced employers to fire the company employees on large number.