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.