Question

Which is the best example of frictional unemployment?

A.
a plumber’s contract with an apartment building ending

B.
college graduates looking for their first jobs after their internships

C.
workers being laid off during a period of recession

D.
a company moving to another state, leaving its workforce without jobs

Answer 1

B. College graduates looking for their first jobs after their internships is the best example of frictional unemployment. Frictional unemployment occurs when individuals are between jobs or when they are searching for their first job in the labor market. In this case, college graduates who have completed their internships are actively seeking full-time employment, therefore experiencing frictional unemployment.