Which term refers to unemployment that is the result of a well-functioning economy that rewards innovation and new ideas?
A) frictional unemployment
B) cyclical unemployment
C) structural unemployment
D) innovative unemployment

Question

Quizplus · Accepted Answer

Frictional unemployment refers to the temporary unemployment that arises when individuals are in between jobs or are searching for their first job. In a well-functioning economy that rewards innovation and new ideas, workers may choose to leave one job in search of a higher-paying or more fulfilling opportunity. As they search for that new opportunity, they may experience frictional unemployment. This is not a result of a poorly-functioning economy, but rather a natural occurrence in a dynamic and competitive job market.

Which Term Refers to Unemployment That Is the Result of a Well-Functioning