Question

Frictional unemployment A) is present even when labor markets are working well. B) is the result of worker skills not matching the jobs available. C) is zero when the economy achieved the natural rate of unemployment. D) exists only when the economy is in the natural rate of unemployment.

Answer 1

Answer

The correct answer is option B. Frictional unemployment is the result of worker skills not matching the jobs available. This type of unemployment normally occurs as a result of workers and employers not having enough or the proper information when looking for a new job, or looking for a new employee. Sometimes the worker is not being successful in finding the right company that is looking for someone with skills that the person possesses. Or sometimes is the company that believes that they should not hire someone, waiting to fins a better candidate.