Frictional Unemployment Arises When

question 19

Multiple Choice

Frictional unemployment arises when

• A)unskilled or low-skilled workers find it difficult to obtain desirable,long-term jobs.
• B)labour must be reallocated from industries that are shrinking to areas that are growing.
• C)workers must search for suitable jobs and firms must search for suitable workers.
• D)output and employment are below full-employment levels.

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Definitions:

Double Value

A term indicating that an item’s or asset's value has increased to twice its original value.

Compounded Quarterly

Interest calculation method where the interest earned is calculated and added to the principal four times a year.

Monthly Compounded

Interest calculation method where interest is added to the principal sum of a loan or deposit each month, leading to interest on interest.

Monthly Compounding

Calculation of interest on the principal sum plus any previously earned interest on a monthly basis.