Why Is Frictional Unemployment Considered to Be Productive

question 24

Multiple Choice

Why is frictional unemployment considered to be productive?

• A) Search activities of workers and firms resulting in frictional unemployment improve the allocation of resources.
• B) Firms do not hire a worker until they find the most educated worker.
• C) There are more potential workers seeking jobs than there are jobs for workers when there is frictional unemployment.
• D) The demand for highly skilled workers exceeds the supply of highly skilled workers when there is frictional unemployment.
• E) Frictional unemployment leads to a decrease in the unemployment rate.

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Definitions:

Durable Power of Attorney

A legal document that grants a designated person the authority to make financial and/or health care decisions on behalf of someone else, even if the grantor becomes incapacitated.

Incapacity

The lack of legal ability to perform an act, such as entering into a contract due to mental disability or minority.

Sound Mind and Memory

A legal term indicating that a person is mentally competent to make decisions and understand their consequences.

Holographic

Related to or produced by holography, a photographic technique that records the light scattered from an object and then presents it in a way that appears three-dimensional.