Which of the following is the best example of frictional unemployment?
A)A worker is laid off because his firm has to reduce production due to reduced demand.
B)A worker quits her current job to search for a better one.
C)An ironworker cannot find a job in Alberta because all job vacancies are in Quebec.
D)Bank tellers are unable to find jobs due to technological advances in the banking system.
E)Inflationary pressures have led to higher wages for all jobs.

Question

Quizplus · Accepted Answer

Frictional unemployment refers to when workers voluntarily leave their jobs in search of better opportunities. Choice A is an example of cyclical unemployment, which is caused by changes in the business cycle. Choice C is an example of structural unemployment, which occurs when workers' skills do not match the jobs available. Choice D is also an example of structural unemployment, as technological advances have made the jobs of bank tellers obsolete. Choice E is an example of nominal wage rigidity, which occurs when wages cannot be adjusted downwards to reflect changes in the labor market.

Which of the Following Is the Best Example of Frictional