Which of the following statements is correct?
A)Technological advances always lead to the permanent displacement of workers.
B)In a growing and dynamic economy, jobs are constantly being destroyed and created.
C)Without unemployment insurance, the average duration of unemployment would likely be longer.
D)If there is a balance between demand and supply in the labor market, frictional employment must equal zero.

Question

Which of the following statements is correct?
A)​Technological advances always lead to the permanent displacement of workers.
B)​In a growing and dynamic economy, jobs are constantly being destroyed and created.
C)​Without unemployment insurance, the average duration of unemployment would likely be longer.
D)​If there is a balance between demand and supply in the labor market, frictional employment must equal zero.

Quizplus · Accepted Answer

Economic growth and technological advances lead to both job creation and job destruction. It is a natural process of the economy.

Answer: C
 Unemployment insurance provides a financial safety net to workers who have lost their jobs. Without this safety net, people would likely have to hold out longer for a job that matches their skills and preferences.

Option A is incorrect because technological advances can create new job opportunities, leading to a shift in job roles and industries. The advancement of technology can also make some jobs less labor-intensive, leading to improved working conditions.

Option D is incorrect because frictional unemployment is a result of temporary job transitions, such as graduating from school or quitting one job to search for another. Even if there is a balance between labor supply and demand, there may still be some people experiencing frictional unemployment.

Which of the Following Statements Is Correct