Frictional unemployment goes up when
A)A student quits work to return to school at the end of the summer.
B)A corporation transfers a worker to another city.
C)A worker quits one job to search for another in the same line of work.
D)There is inadequate demand for labor.

Question

Quizplus · Accepted Answer

Frictional unemployment is unemployment that occurs because of the time workers spend in job search. In choice A, the student quitting work to return to school is not frictional unemployment, as the student is not actively searching for a job. In choice B, the worker being transferred to another city is not frictional unemployment, as the worker is still employed. In choice D, inadequate demand for labor is a different type of unemployment, known as cyclical unemployment. Choice C is correct because a worker quitting one job to search for another in the same line of work is an example of frictional unemployment.

Frictional Unemployment Goes Up When