An Unemployed Worker Can Be Identified as Being "Frictionally" Unemployed

question 22

Multiple Choice

An unemployed worker can be identified as being "frictionally" unemployed if

• A)minimum wage laws prevent the worker from finding a job.
• B)the worker has a different set of skills than what is desired by firms.
• C)the worker quits a job in order to search for a better one.
• D)the worker wants to work only during certain months of the year.
• E)there is a recession and the worker is laid off.

---

Definitions:

Call Premium

The additional amount over the bond's face value that must be paid to call a bond before its maturity date.

Put Contract

An options contract that gives the holder the right to sell a specified amount of an underlying security at a specified price within a specified time.

Put Premium

The price that must be paid to purchase a put option, which gives the holder the right but not the obligation to sell a specified quantity of an underlying asset at a set price within a specified time.

Maximum Profit

The highest possible financial gain achievable from an investment or business operation, often estimated under ideal conditions.