Frictional unemployment can be distinguished from other types of unemployment in that we assume all of the following except
A)There is an adequate demand for labor to employ the frictionally unemployed.
B)The frictionally unemployed possess the necessary education and skills to become employed.
C)Search time is relatively short for frictionally unemployed persons.
D)The skills of the frictionally unemployed are no longer in demand.

Question

Quizplus · Accepted Answer

Frictional unemployment is caused by people who are in-between jobs or are seeking better employment opportunities. It is assumed that there is an adequate demand for labor to employ the frictionally unemployed, that they possess the necessary education and skills to become employed, and that search time is relatively short for them. Therefore, the only option that is not assumed is that the skills of the frictionally unemployed are no longer in demand.

Frictional Unemployment Can Be Distinguished from Other Types of Unemployment