ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A situation where there is a major mismatch between the jobs available and skills of the job seekers
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The type of unemployment that results from economic downturns
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The unemployment that results from people entering the labor market or switching jobs
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A type of unemployment that is rarely occurring, and typically only in undeveloped countries
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Detailed explanation-1: -Frictional unemployment is the result of voluntary employment transitions within an economy. Frictional unemployment occurs in a growing, stable economy. Workers moving from job to job and new workers entering the workforce contribute to frictional unemployment.
Detailed explanation-2: -Answer and Explanation: The correct answer is b) Unemployment caused by the ordinary difficulties of matching firms with job seekers. Frictionally unemployed workers are those workers who are in between jobs. They are temporarily unemployed until they find a new job.
Detailed explanation-3: -Frictional unemployment is a form of unemployment reflecting the gap between someone voluntarily leaving a job and finding another. As such, it is sometimes called search unemployment, though it also includes gaps in employment when transferring from one job to another.
Detailed explanation-4: -Frictional unemployment is short-term and a natural part of the job search process. In fact, frictional unemployment is good for the economy, as it allows workers to move to jobs where they can be more productive.
Detailed explanation-5: -Frictional unemployment examples People who leave their current job to find a better one. People who are entering the workforce for the first time. People who are reentering the workforce.