Question : Which of the following is a measure to reduce frictional unemployment?
Option 1: Implementing labor market reforms
Option 2: Providing unemployment benefits
Option 3: Promoting entrepreneurship
Option 4: Enhancing job security
Correct Answer: Implementing labor market reforms
Solution : The correct answer is (a) Implementing labor market reforms
Implementing labor market reforms can help reduce frictional unemployment by improving the efficiency and effectiveness of the job matching process. These reforms can include measures such as improving job search assistance, reducing information barriers, enhancing the functioning of labor market intermediaries, and facilitating the transfer of skills and qualifications. By reducing the frictions and inefficiencies in the labor market, individuals can find suitable employment more quickly, thus reducing frictional unemployment.
Therefore, the most appropriate measure to reduce frictional unemployment is implementing labor market reforms.
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