Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam isA. frictionally unemployed. Frictional unemployment does not exist in the long run. B. structurally unemployed. Structural unemployment exists even in the long run. C. structurally unemployed. Structural unemployment does not exist in the long run. D. frictionally unemployed. Frictional unemployment exists even in the long run.

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Business

Anne Downs

17 May, 08:04

Sam has no job but keeps applying to get a job with a business that is unionized. He is qualified and he finds the pay attractive, but the firm is not hiring. Sam isA. frictionally unemployed. Frictional unemployment does not exist in the long run. B. structurally unemployed. Structural unemployment exists even in the long run. C. structurally unemployed. Structural unemployment does not exist in the long run. D. frictionally unemployed. Frictional unemployment exists even in the long run.

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Answers (1)

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Bradley Johnson · Answer 1

The correct answer is option B.

Explanation:

Structural unemployment is the involuntary unemployment caused by a mismatch between skills that the unemployed workers possess and the skills that the companies are looking for. Unlike cyclical unemployment, it is not caused because of business cycles. It exists in the long run as well as the short run.

Frictional unemployment is the type of involuntary unemployment which is caused by shifts in jobs. This type of unemployment exists for short term only.