Multiple choice

Unemployment due to change in demand and supply conditions or due to change in market conditions is called

  1. structural unemployment

  2. disguised unemployment

  3. frictional unemployment

  4. open unemployment

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Frictional unemployment occurs when workers are temporarily between jobs due to normal labor market turnover - people quitting, being fired, or entering/re-entering the workforce. It's caused by the time lag matching workers with jobs as demand, supply, and market conditions constantly change. Structural unemployment is from skill mismatches, disguised is hidden underemployment, and open unemployment is visible joblessness.