David is a stockbroker. He has had several job offers, but he has turned them down because he thinks he can find a firm that better matches his tastes and skills. Paul is a lawyer. He has looked for work for some time, but no law firms are hiring. Which of the following best describes the nature of their unemployment?
A) David and Paul are both frictionally unemployed.
B) David and Paul are both structurally unemployed.
C) David is frictionally unemployed, and Paul is structurally unemployed.
D) David is structurally unemployed, and Paul is frictionally unemployed.

Question

Quizplus · Accepted Answer

David is frictionally unemployed because he is voluntarily choosing to turn down job offers to find a better fit. This is a common type of unemployment known as frictional unemployment. Paul, on the other hand, is structurally unemployed because there are no jobs available in his field. This is a result of changes in the economy or technology which make certain skills or industries less in demand. This type of unemployment is known as structural unemployment.

David Is a Stockbroker