When an individual is frictionally unemployed,the unemployment arises from
A)a short-term elimination of jobs because of a slowdown in business activity.
B)imperfect labour market information which requires individuals to search for appropriate employment.
C)the permanent elimination of jobs because of a change in the structure of the economy.
D)a reduction in the overall demand for labour's skills.

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when individuals are temporarily without work while they search for a new job that is better suited to their skills and preferences. This search process often takes time, and individuals may need to apply to multiple jobs before they find the right fit. Frictional unemployment is therefore caused by the imperfect flow of information in the labor market, which leads to "frictions" in the matching process between workers and employers. This is why Choice B, imperfect labor market information requiring individuals to search for appropriate employment, is the best answer.

When an Individual Is Frictionally Unemployed,the Unemployment Arises from