Which of the Following Is an Example of Frictional Unemployment

question 54

Multiple Choice

Which of the following is an example of frictional unemployment?

• A)Dave searches for a new job after voluntarily moving to San Diego.
• B)Elaine is willing to work for less than the minimum wage, but employers cannot hire her for less than the minimum wage.
• C)Bill is qualified and would like to be an airline pilot, but airlines do not find it profitable to hire him at the wage established by the airline pilots' union.
• D)Joan is willing to work for less than the going wage, but there are no jobs available.

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Definitions:

Net Present Value

A method used in capital budgeting to evaluate the profitability of an investment, calculated by discounting future cash flows to the present value.

Company Stock

Shares of ownership in a corporation, representing a claim on the company's assets and earnings.

True Cost

The complete expense of a product or service, accounting for all financial, economic, and environmental factors.

All-Stock Deal

A type of corporate acquisition or merger where payment is made entirely in the stock of the acquiring company rather than in cash.