Frictional unemployment may be economically beneficial if:
A)its psychological costs are borne only by the unemployed worker.
B)losses in economic output are small.
C)it leads to a better match between worker and job.
D)the social costs are limited to smaller tax revenues collected.

Question

Quizplus · Accepted Answer

Frictional unemployment allows some "slippage" in the job market, much like what happens in the apartment rental market. If there were never openings in either market, there would be no opportunities to "trade up."

Frictional Unemployment May Be Economically Beneficial If