Question : Which of the following is an example of frictional unemployment?
Option 1: A person loses their job due to a recession
Option 2: A person is searching for a job after completing their education
Option 3: A person's job becomes obsolete due to technological advancements
Option 4: A person is temporarily unemployed between jobs
Correct Answer: A person is searching for a job after completing their education
Solution : The correct answer is (b) A person is searching for a job after completing their education
Frictional unemployment refers to the temporary unemployment that occurs when individuals are transitioning between jobs or entering the workforce. It is characterized by the search and waiting time for suitable job opportunities. This scenario represents frictional unemployment as the individual is in the process of finding employment after finishing their education.