Which of the following offers an example of frictional unemployment?
A) The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-tern decline in horse-and-buggy transportation.
B) The rise in unemployment among farm workers after harvest.
C) Unemployment resulting from the business cycle.
D) None of the above are correct.

Question

Quizplus · Accepted Answer

Frictional unemployment is a temporary type of unemployment that occurs when workers are in-between jobs due to factors such as job searching or transitioning to a new job. In this case, the rise in unemployment among farm workers after harvest would be an example of frictional unemployment as these workers are transitioning between seasonal jobs. Option A is an example of structural unemployment, which occurs due to long-term changes in an industry or labor market. Option C is an example of cyclical unemployment, which occurs due to economic downturns or recessions.

Which of the Following Offers an Example of Frictional Unemployment