Which of the Following Offers an Example of Frictional Unemployment

question 159

Multiple Choice

Which of the following offers an example of frictional unemployment?

• A) The rise in unemployment for stable workers after the development of gasoline-powered automobiles and the resulting long-tern decline in horse-and-buggy transportation.
• B) The rise in unemployment among farm workers after harvest.
• C) Unemployment resulting from the business cycle.
• D) None of the above are correct.

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Definitions:

Fallacy of Composition

The error of assuming that what is true of a part is necessarily true of the whole.

Prosperity

A state of economic well-being characterized by high levels of income, employment, and production.

Depression

A severe and prolonged reduction in economic activity as occurred during the 1930s

Scarce Resources

Natural, human, and capital resources that are limited in supply, which necessitates choices about how they are allocated.