Question 26
Labour MarketFrictional unemployment can be reduced by
- A.encouraging the use of restaining schemes.
- B.removing barriers to labour mobility.
- C.restricting the introduction of new technology.
- D.lowering the level of wages paid to young people.
Show the answer and explanation
Answer: B (removing barriers to labour mobility.)
Explanation
Frictional unemployment is due to delays in moving between jobs, so making labour more mobile reduces it.