Which of the following types of unemployment will exist even if the wage is at the competitive equilibrium ?
Correct answer: C. Frictional Unemployment
- A. Unemployment due to unions
- B. Unemployment due to efficiency wages
- C. Frictional Unemployment
- D. Unemployment due to minimum-wage laws
Explanation
Frictional unemployment exists because workers take time to search for and match with suitable jobs, even when wages are at the competitive equilibrium. Union, efficiency-wage, and minimum-wage unemployment arise from wage-setting above equilibrium.
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