Frictional unemployment
A) is voluntary part-time unemployment.
B) is unemployment associated normal labor turnover.
C) includes discouraged workers.
D) is unemployment associated with declining industries.

Question

Quizplus · Accepted Answer

Frictional unemployment is the type of unemployment that arises due to normal labor turnover such as people leaving their jobs to seek better opportunities, or fresh graduates looking for their first job. It is not caused by economic recessions or industrial decline. The term "frictional" refers to the fact that this type of unemployment is temporary and is expected in a dynamic economy where workers are constantly seeking better opportunities. Discouraged workers are not considered to be part of frictional unemployment as they have given up on actively seeking employment.

Frictional Unemployment