Question

Frictional unemployment occurs when:____.A. there is friction between an employer and employee. B. a worker decides to quit one job to seek a different job. C. a large corporation transfers a worker to another city. D. college students go back to school at the end of the summer.

Answer 1

Answer:

B. a worker decides to quit one job to seek a different job.

Explanation:

Frictional unemployment is a temporary form of unemployment that occurs when employees leave their current jobs. After quitting work,  workers will be said to frictionally unemployed until they find other jobs. College graduates who are yet to find their first employment are also frictionally unemployed.

Frictional unemployment is not caused by a boom or and a decline in economic activities. Even when the economy is full employment, frictional unemployment will be present are workers search for better opportunities elsewhere. New workers entering the job markets cause frictional employment even when the economy is doing well.