Which of the Following Explains Why Frictional Unemployment Exists in an Economy

question 72

Multiple Choice

Which of the following explains why frictional unemployment exists in an economy?

• A) Most workers shirk at work.
• B) Unemployment benefits encourage workers not to look for jobs.
• C) It takes time for an unemployed worker to find a firm with a well-matched job vacancy.
• D) Job search is a supply-side phenomenon in the labor market, and firms make no attempts to advertise for the vacancies they have.

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Definitions:

Serious Inflation

An extreme form of inflation characterized by rapid and uncontrollable rises in prices across the economy.

Supply-Side Economists

Economists who believe that reducing taxes and decreasing regulation will lead to an increase in production and economic growth.

Laffer Curve

A theoretical representation showing the relationship between tax rates and the amount of tax revenue collected by governments.

Tax Cuts

Reductions in the amount of taxes imposed by the government, often to stimulate economic growth or increase disposable income.