Frictional Unemployment Arises

question 18

Multiple Choice

Frictional unemployment arises:

• A) whenever the number of workers willing to work at the going wage exceeds the number of workers that firms are willing to hire.
• B) when workers and firms need time to locate each other and to digest the information about the suitability and the value of the job match.
• C) because skills are specific to a job, and there is some inertia in workers acquiring new skills.
• D) whenever friction between the firm and the worker lead to the worker leaving the firm.
• E) whenever there is a mismatch between the skills of jobless workers and the skills that employers desire for their vacant positions.

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Definitions:

Diseconomies of Scale

The condition when a company grows so large that the costs per unit increase, causing a decrease in efficiency.

Coordinating

The organization and alignment of activities, processes, or efforts to ensure efficient and effective achievement of goals or outcomes.

Managing

The process of planning, organizing, leading, and controlling resources to achieve specific goals.

Long-Run Average Total Cost Curve

A curve that shows the lowest possible cost of producing different levels of output when all factors of production, including capital, can be varied.