Question

Olivia is a part-time worker at a jam-producing company in her village. Her job entails plucking and cleaning grapefruits. Because grapefruits grow only in winter, Olivia is unemployed for most part of the year. The given scenario exemplifies _____.
a. seasonal unemployment.b. frictional unemployment.c. classical unemployment.d. cyclical unemployment.

Answer 1

Answer:

a. seasonal unemployment

Explanation:

Seasonal unemployment occurs when labour is unemployed in some seasons. Seasonal unemployment is regular and expected.

Olivia is usually employed during winter and unemployed in other seasons.

Frictional unemployment is the period of time labour is unemployed between the time labour leaves it's employment and the time it gets another one.

Classical unemployment occurs when the wages labour demands is higher than the amount the employer is willing to pay.

Cyclical unemployment moves with the business cycle. Unemployment is higher in a downturn and reduces in a boom.