Which of the following explains why frictional unemployment exists?
A) Some workers have skills that have become obsolete.
B) There are individuals who work part-time but prefer to work full-time.
C) There are costs associated with searching for jobs.
D) Policy makers have been unable to prevent recessions.

Question

Quizplus · Accepted Answer

Frictional unemployment exists because there are inherent costs and time associated with searching for new jobs, even in a healthy economy. This includes the time it takes to find a job that matches an individual's skills, preferences, and salary requirements.

Which of the Following Explains Why Frictional Unemployment Exists