Frictional unemployment
A) exists when jobs are available for qualified workers but the unemployed lack the required qualifications.
B) refers to the social frictions caused by unemployment.
C) results from the entrance of new workers into the labor market and the voluntary movement of workers between positions.
D) was the major component of unemployment during the Great Depression.
E) can and should be completely eliminated.

Question

Quizplus · Accepted Answer

Frictional unemployment is caused by the natural movement of workers between jobs and is a normal part of the labor market process. It occurs when workers are between jobs or entering the labor market for the first time, so it can never be completely eliminated. Options A and D are incorrect because the former describes the skills mismatch between available jobs and job seekers, while the latter refers to the historical period of high unemployment. Option B is incorrect because social frictions caused by unemployment are more appropriately described as social costs, rather than a type of unemployment. Option E is incorrect since frictional unemployment is not something that can be entirely eliminated.

Frictional Unemployment