Chapter 16: Problem 8

Frictional unemployment applies to a. workers with skills not required for existing jobs. b. short periods of unemployment needed to match jobs and job seekers. c. people who spend long periods of time out of work. d. unemployment related to the ups and downs of the business cycle.

Short Answer

Expert verified

Frictional unemployment applies to short periods of unemployment needed to match jobs and job seekers (option b).

Step by step solution

Read each option carefully

: Read all options before deciding which one correctly defines frictional unemployment.

Analyze option (a)

: a. workers with skills not required for existing jobs. This option doesn't define frictional unemployment. Instead, it refers to "structural unemployment," which occurs when there's a mismatch between the skills that workers have and the skills required by employers.

Analyze option (b)

: b. short periods of unemployment needed to match jobs and job seekers. This option appears to be correct. Frictional unemployment occurs when workers are temporarily unemployed while they search for a new job or when employers are looking for suitable employees. This type of unemployment is expected in any economy, as people naturally switch jobs or enter/exit the workforce.

Analyze option (c)

: c. people who spend long periods of time out of work. This option isn't the correct definition of frictional unemployment. Instead, it refers to "long-term unemployment," which happens when someone is jobless for an extended period, often due to a lack of available jobs or a mismatch of skills.

Analyze option (d)

: d. unemployment related to the ups and downs of the business cycle. This option defines "cyclical unemployment," not frictional unemployment. Cyclical unemployment occurs due to fluctuations in the economy during its natural ups and downs or in response to external economic disturbances.

Choose the correct option

: After analyzing all the options, it's clear that option (b) - short periods of unemployment needed to match jobs and job seekers - is the correct definition of frictional unemployment.

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