Which type of unemployment is short-term, unrelated to the business cycle, and always present?
ACyclical unemployment
BFrictional unemployment
CStructural unemployment
DSeasonal unemployment
Answer & Solution
Correct answer: B. Frictional unemployment
1. Frictional unemployment is short-term unemployment that is not related to the business cycle.
2. It covers people waiting to start a better job, people re-entering the job market and first-time entrants.
3. This type is always present and has little impact on the economy.
4. Cyclical unemployment is tied to the business cycle, which rules it out here.
5. Structural unemployment is involuntary and comes from a skills mismatch, and seasonal unemployment is tied to times of the year.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 1 "Understanding Economic Systems and Business", section 1.4 Macroeconomics: The Big Picture_
Keep practising Understanding Economic Systems and Business
Browse all Understanding Economic Systems and Business questions for CSEET (CS Entrance), or explore more Business Environment topics.
Related questions
What is a strategic alliance?Which two characteristics define an oligopoly?Which of these is given as an example of a pure monopoly?What are barriers to entry?What is a pure monopoly?What defines the market structure of an industry?Which change shifts a supply curve to the left?Which change shifts a demand curve to the right?