ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The correct answer is B. Frictional unemployment refers to the time in which a worker does not have a job because he isseeking for a new one or transitioning from one job to another. Therefore, since Mr. Skinner quit in order to look for a different job, he would count as frictionally unemployed.

Detailed explanation-2: -Frictional unemployment examples include: 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.

Detailed explanation-3: -Frictional unemployment is a type of short-term unemployment. Frictional unemployment happens when a person is voluntarily job searching or searching for a new career. Frictional unemployment isn’t necessarily a bad thing. In fact, because frictional unemployment is voluntary, it can be a sign of a healthy economy.

Detailed explanation-4: -Frictional unemployment is a type of unemployment that arises when workers are searching for new jobs or are transitioning from one job to another. It is part of natural unemployment and hence is present even when the economy is considered at full employment.

Detailed explanation-5: -Frictional unemployment involves people transitioning between jobs; it has nothing to do with the economic cycle and is voluntary. Structural unemployment is a direct result of shifts in the economy, including changes in technology or declines in an industry.