Catherine Quit Her Job in Order to Look for a New

question 180

Multiple Choice

Catherine quit her job in order to look for a new one; therefore, she is best considered as

• A) structurally unemployed.
• B) frictionally unemployed.
• C) cyclically unemployed.
• D) seasonally unemployed.

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Definitions:

Nonbinding Price Floor

A minimum price set by the government that is below the equilibrium price, having no effect on the market.

Minimum Wage

The lowest legal hourly wage that employers can pay to workers, set by government regulation.

Labor Shortage

A situation in which employers have difficulty filling vacancies because there are not enough available workers with the necessary skills.

Unemployment

The situation where individuals who are capable of working and are actively seeking employment are unable to find a job.