Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

If workers in these two industries require similar amounts of training, and if workers at the beginning of their careers can choose which industry to train for, what would you expect to happen to the wages in these two industries?

- Wages between the two industries would be equal.
- Wages in the auto manufacturing industry would be greater than those in the aircraft manufacturing industry.
- Wages in the auto manufacturing industry would be less than those in the aircraft manufacturing industry.
- Wages in the auto manufacturing industry could be greater or less than those in the aircraft manufacturing industry.

Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft.
This would cause the demand for labor in the auto manufacturing industry to (rise/fall) and the demand for labor in the aircraft manufacturing industry to (rise/fall) .

Suppose that workers in one industry cannot be quickly retrained for the other.

In the short run, wages in the auto industry would (rise/fall) , and wages in the aircraft industry would (rise/fall) .

How would these shifts in demand affect equilibrium wages in the long run?

- Wages between the two industries would be equal.
- Wages in the auto manufacturing industry could be greater or less than those in the aircraft manufacturing industry.
- Wages in the auto manufacturing industry would be greater than those in the aircraft manufacturing industry.
- Wages in the auto manufacturing industry would be less than those in the aircraft manufacturing industry.

If for some reason wages fail to adjust to the new equilibrium levels as a result of opening up to international trade, there will be a (shortage/surplus) of workers in the aircraft industry and a (shortage/surplus) of workers in the auto industry.