When an individual is frictionally unemployed, the unemployment arises from
A) a short-term elimination of jobs because of a slowdown in business activity.
B) imperfect labor market information which requires individuals to search for appropriate employment.
C) the permanent elimination of jobs because of a change in the structure of the economy.
D) a reduction in the overall demand for labor's skills.

Question

Quizplus · Accepted Answer

Frictional unemployment occurs when individuals are temporarily unemployed due to imperfect labor market information, which requires individuals to search for appropriate employment. It is a result of the time it takes for individuals to find and match with job openings that suit their skills and qualifications. This type of unemployment is considered a natural part of a healthy labor market, as workers search for better job opportunities or transitions within their career paths.

When an Individual Is Frictionally Unemployed, the Unemployment Arises from