AP Macroeconomics Question 287: Answer and Explanation

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Question: 287

6. You are working at a supermarket bagging groceries, but you are unhappy about your wage, so you quit and begin looking for a new job at a competing grocery store. What type of unemployment is this?

  • A. Cyclical
  • B. Structural
  • C. Seasonal
  • D. Frictional
  • E. Discouraged

Correct Answer: D

Explanation:

D —Frictional unemployment occurs when a person is in between jobs. This person has not been laid off due to a structural change in the demand for skills, or because of a cyclical economic downturn, or because of a new season. A low wage might be discouraging; a discouraged worker is a worker who has been unemployed for so long that he or she has ceased the search for work.