Economics Semester Exam

Question

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Question
Which type of unemployment is the product of a healthy economy?(1 point)
Responses

Unemployment as a result of people moving from one job to another.
Unemployment as a result of people moving from one job to another.

Unemployment as a result of demand for products and services decreasing.
Unemployment as a result of demand for products and services decreasing.

None; unemployment is the result of an unhealthy economy.
None; unemployment is the result of an unhealthy economy.

Unemployment as a result of a mismatch of the skills of workers and the skills needed by employers.

Answer 1

The correct response to the question about which type of unemployment is the product of a healthy economy is:

Unemployment as a result of people moving from one job to another.

This type of unemployment, known as frictional unemployment, occurs when individuals are transitioning between jobs, entering the workforce, or re-entering it after a period away. It is typically seen in a healthy economy as it reflects job-seeking activity rather than a lack of available jobs.