Which of the Following Is an Example of Frictional Unemployment

question 9

Multiple Choice

Which of the following is an example of frictional unemployment?

• A) An autoworker is temporarily laid off from an automobile company due to a decline in sales
• B) A geologist is permanently laid off from an oil company due to a new technological advancement
• C) A worker at a fast-food restaurant quits work to attend college
• D) A real estate agent leaves a job in Texas and searches for a similar, higher paying job in California

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.

Discount Rate

The interest rate used to determine the present value of future cash flows in discounted cash flow analysis, reflecting the risk and time value of money.

Semiannual Interest

Interest that is calculated and paid twice a year.

Coupon Rate

The annual interest rate paid on a bond, expressed as a percentage of the bond's face value.