What Is Most Likely to Cause Frictional Unemployment

question 114

Multiple Choice

What is most likely to cause frictional unemployment?

• A) the minimum wage
• B) a worker leaving a job to find one with better benefits
• C) labour unions
• D) an increase in income tax

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Definitions:

Allocation of Resources

The process by which resources are distributed for the production of goods and services within an economy.

Government Intervention

Regulatory actions taken by a government in order to affect decisions made by individuals, groups, or organizations within its economic systems.

Excludable

A characteristic of a good or service that allows the owner or provider to prevent others from using it without permission.

Rival

A characteristic of a good or service that implies its consumption by one individual prevents simultaneous consumption by another individual.