Question

Which type of unemployment is the product of a healthy economy?
A. Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers
B. None, unemployment is the result of an unhealthy economy
C. Unemployment as a result of demand for products and services decreasing
D. Unemployment as a result of people moving from one job to another

Answer 1

D. Unemployment as a result of people moving from one job to another — this is frictional unemployment, a normal, healthy part of a functioning labor market.