Full employment does not necessarily mean that every adult has a job because
A)students and homemakers are always looking for work.
B)there are always some discouraged workers.
C)policy makers never want to achieve full employment.
D)there are transaction costs in finding a job in the labor market.

Question

Quizplus · Accepted Answer

Full employment refers to a situation where the economy is producing at its maximum potential and all available labor resources are being utilized. However, even in such a situation, some people may be jobless due to transaction costs in finding a job in the labor market. These costs may include the time, effort, and money needed to search for a job, interview, and relocate. Some individuals may also face barriers to employment such as discrimination, lack of skills, and disability, which can prevent them from entering the labor force. Therefore, full employment does not necessarily mean that every adult has a job.

Full Employment Does Not Necessarily Mean That Every Adult Has