A politician makes the following argument:
"The economy would operate more efficiently if frictional unemployment were eliminated. Therefore, a goal of government policy should be to reduce the frictional rate of unemployment to the lowest possible level."
Eliminating all frictional unemployment
A. will not be good for the economy since the presence of frictional unemployment decreases job creation.
B. will not be good for the economy since the presence of frictional unemployment increases economic efficiency.
C. will be good for the economy since the presence of frictional unemployment increases job destruction.
D. will be good for the economy because the total unemployment will fall.
Answer: B. will not be good for the economy since the presence of frictional unemployment increases economic efficiency.