- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics (1)
- Reading 15. Understanding Business Cycles
- Subject 3. Unemployment
CFA Practice Question
Which of the following is the best example of frictional unemployment?
A. You voluntarily quit your job and you're looking for a new one.
B. Typewriters have largely been replaced by computers, so the typewriter industry permanently lays off workers. These workers do not have the skills to get a job in the computer industry.
C. You are employed part-time at a grocery store but you would prefer to work full-time.
Explanation: Frictional unemployment refers to temporary unemployment due to the time that it takes to search for an appropriate job.
User Contributed Comments 4
| User | Comment |
|---|---|
| sheenalim | A) if u stop looking for employment, u stop being unemployed. B) structural unemployment |
| jasonkwk | C) unemployed |
| LCMilkbone | bad question. frictional employment has a job lined up. A mentions nothing of the sort |
| nike | @LCMilkbone: the question ask for an example of "frictional unemployment", not "frictional employment" as you mentioned. |