Which of the following statements is correct?
A) Frictional unemployment is the result of friction between labor and management over how best to perform work.
B) Structural unemployment is unemployment resulting from changes over time in consumer demand or technology.
C) Cyclical unemployment is also called wait unemployment because this unemployment depends on the timing of the business cycle.
D) Search unemployment is the broadest unemployment category because it covers all other types of unemployment.

Question

Quizplus · Accepted Answer

Structural unemployment results from changes in the economy that lead to a mismatch between the skills that workers have and the skills required for available jobs, such as changes in technology or consumer demand. The other options are incorrect: 
A) Frictional unemployment refers to the temporary unemployment that occurs when workers are between jobs or are searching for new ones, not due to friction between labor and management.
C) Cyclical unemployment is caused by fluctuations in the overall economic activity, not wait unemployment.
D) Search unemployment, also known as frictional unemployment, only refers to temporary unemployment that occurs during a job search and is not a broad category covering all types of unemployment.

Which of the Following Statements Is Correct