One of the social benefits of frictional unemployment is that
A)workers get time off from work.
B)economic growth is limited.
C)workers move from less to more valuable firms.
D)wage rates decrease.

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when workers are temporarily between jobs and looking for new employment opportunities. During this time, workers have the opportunity to search for jobs that better match their skills and preferences, which can lead them to move from less valuable firms to more valuable ones. This movement of workers from less productive firms to more productive ones can lead to increased efficiency and productivity, benefiting the overall economy. Therefore, the best choice is C. Options A, B, and D are incorrect as they do not reflect any social benefits of frictional unemployment.

One of the Social Benefits of Frictional Unemployment Is That