Which of the following statements about frictional unemployment is true?
A) It can be eliminated only in a free society.
B) It is a long-term unemployment.
C) It does not exist in developed economies.
D) It is also called structural unemployment.
E) It arises when people choose to change jobs.

Question

Quizplus · Accepted Answer

Frictional unemployment is caused by the natural turnover in the labor market as individuals leave their current jobs to seek new employment opportunities. This type of unemployment is characterized by a short period of unemployment and is considered to be a normal and healthy part of a dynamic economy. Therefore, option E is the correct choice. The other options are incorrect as frictional unemployment is not necessarily eliminated in a free society (option A), it is not a long-term unemployment (option B), it exists in all economies including developed ones (option C), and it is not the same as structural unemployment (option D).

Which of the Following Statements About Frictional Unemployment Is True