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:

Paid Preferred Dividends

Dividends distributed to preferred stockholders, typically on a fixed schedule, before any dividends are given to common stockholders.

Declared Preferred Dividends

Dividends announced by a company's board of directors to be paid on preferred shares.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by buying a proportionate share of any new stock issues.

Common Shareholders

Individuals or entities that own common shares in a company, giving them voting rights and a share in the company's profits.