Which of the following is NOT true about the three major types of unemployment?

Question

Which of the following is NOT true about the three major types of unemployment?

a. Frictional unemployment occurs only during recessions.

b. Frictional unemployment consists of workers searching for better jobs.

c. Structural unemployment results when the demand for certain skills falls as the demand for other skills intensifies. Unlike frictional unemployment, structural unemployment is long term and requires worker retraining or education.

d. Cyclical unemployment is related to the business cycle and typically begins when a recession unfolds.

Explanation / Answer

"A" The statement that Frictional Unemployment occurs only during a recession is a wrong statement. Frictional unemployment is there all the time but during a recession, it gets intensified because the time duration between quitting a job and getting a new job gets longer.

The answer is "A".

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