When an Individual Is Frictionally Unemployed, the Unemployment Arises from

question 161

Multiple Choice

When an individual is frictionally unemployed, the unemployment arises from

• A) a short-term elimination of jobs because of a slowdown in business activity.
• B) imperfect labor market information which requires individuals to search for appropriate employment.
• C) the permanent elimination of jobs because of a change in the structure of the economy.
• D) a reduction in the overall demand for labor's skills.

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Definitions:

Income Tax Benefit

A reduction in income tax payments, which can result from deductions, exemptions, or credits, often recognizing benefits from losses or deductions from previous years.

Income Tax Expense

The amount of money a company or individual owes to the government based on earned income, reflecting the tax rate and taxable earnings for a fiscal period.

Income Tax Rate Change

A modification in the percentage that individuals or corporations are required to pay to the government from their income.

Future Liability

A financial obligation or debt that a company is required to pay at a future date.