Exercise 1: Chapter 16 Question 5
Frictional unemployment is one type of unemployment and occurs when people move or change jobs. Individuals taking their first job tend to have higher than average rate of turnover. Settling into to a long-term job can be difficult. This type of unemployment is a choice on the part of the individual.
Frictional unemployment is necessary to promote effective placement of workers to jobs. A worker can leave a job they do like and are not good at so they then can find a new job that they do like and are good at. Some percentage of frictional employment is desired so individuals are in a job they enjoy and are comfortable with and able to perform well. In the face of a recession this type of unemployment is reduced because people are afraid to leave their job. It does not matter if the job is one they dislike they will stay because of a lack of opportunity of finding a job better for them. (Thoma, 1)
When people change jobs because they are unsatisfied and find a job they are better suited for the benefit comes to the employee and the employer. The employer now has an employee who will produce more for them because they like and enjoy their job. The employee is no longer just going through the motions of work and have found something they truly enjoy leaving the position they previously held open. The open position can now be filled with someone who likes that job and is better suited for it. The same applies when people decide to move to another city or state. They are bettering themselves and the company that they now work for when they relocate to a better work and home environment for them. It can be a hard decision to make when you feel a job is not for you but once it is decided the opportunity to find a job that fits is up to the individual.
Exercise 2: Chapter 25 Question 14
The policy that protectionist adhere to...