Frictional Unemployment Occurs When Job Openings

question 9

Multiple Choice

Frictional unemployment occurs when job openings

• A) exist and people are willing to take them, but the applicants do not have the necessary skill set.
• B) exist, and people are willing to take them, but it takes some time to bring the two together.
• C) exist, but people are not willing to take them, so it makes no sense to bring the two together.
• D) do not exist, although people are willing to work, so it makes no sense to try to bring the two together.

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Definitions:

Consumption Expenditures

The total amount spent by households on goods and services for their own use, not including savings or investments.

Households

Economic entities (of one or more persons occupying a housing unit) that provide resources to the economy and use the income received to purchase goods and services that satisfy economic wants.

Product Market

The marketplace where final goods or services are offered to consumers, businesses, and the public sector.

Circular Flow Model

An economic model depicting the continuous, circular flow of goods, services, and money between households and businesses in an economy.