Question

Frictional unemployment includes

A) unemployment caused by automation of the work place that displaces unskilled workers.
B) unemployment caused by a lack of education so that workers do not possess necessary job skills.
C) unemployment caused by industries moving overseas to better meet foreign competition.
D) unemployment caused by normal labor turnover associated with people leaving and entering the labor force.

Answer 1

Frictional unemployment is best described as unemployment caused by the normal turnover of the labor market, where workers change jobs and need time to find new ones. It's distinct from structural unemployment and is an inherent part of a dynamic economy.

Step-by-step explanation:

Frictional unemployment occurs when there is a temporary lapse in employment during the period a worker is transitioning from one job to another. It is a natural aspect of a dynamic economy and is not necessarily detrimental, as it allows both employers and employees to find a better match. In the given options, frictional unemployment is best described by unemployment caused by normal labor turnover associated with people leaving and entering the labor force (D).

The level of frictional unemployment depends on the ease of communication about job prospects and the willingness of workers to relocate for work, which can be influenced by various socio-economic factors. It is distinct from unemployment caused by automation, lack of education, or industries moving overseas, which relate more closely to structural unemployment.