2)

Mr. Skinner has quit his job in order to look for another one. Mr. Skinner

A)

is cyclically unemployed.

B)

is frictionally unemployed.

C)

is structurally unemployed.

D)

is not counted in the labor force.

Answer is B Frictionally unemployed

The correct answer is B. Mr. Skinner is frictionally unemployed.

Explanation:

Frictional unemployment is unemployment associated with the time spent finding a job.

Frictional unemployment occurs when a person is looking for work after leaving a former one (a voluntary job change); or in case of a temporary loss of seasonal work; or with the first search for work by young people.

In periods of virtually full employment, it is precisely frictional unemployment that accounts for a significant part of total unemployment. In conditions of high unemployment, the share of frictional unemployment is extremely small, with the exception of those sectors of the economy in which there is a shortage of labor.