ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Frictional unemployment is an outcome of voluntary employment transitions within an economy. This type of unemployment refers to a transition period of looking for a new job, for different reasons, such as seeking a better job, being fired from a current job, or having voluntarily quit a current job.

Detailed explanation-2: -Frictional unemployment occurs in a growing, stable economy. Workers moving from job to job and new workers entering the workforce contribute to frictional unemployment. Frictional unemployment is also caused by those deciding to prioritize taking care of their family, returning to school, or finding purpose in life.

Detailed explanation-3: -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-4: -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-5: -Option a) Frictional unemployment does not imply a lack of jobs. It occurs when individuals are in the process of changing jobs. So, the given statement is false.