Asked by Felicity Ramires on Jun 16, 2024
Verified
An increase in unemployment benefits is likely to:
A) reduce a person's incentive to look for work.
B) reduce the opportunity cost of remaining employed.
C) provide a better safety net for employed families.
D) decrease the tax imposed on consumers.
E) increase the need to accept the first job available after becoming unemployed.
Incentive
An incentive is a motivational factor or reward that encourages an individual or group to perform certain actions or behaviors, widely used in economics, business, and psychology to influence decisions.
Unemployment Benefits
Cash transfers to those who lose their jobs and actively seek employment.
Unemployed
A term describing individuals who are capable of working, actively seeking work, but unable to find a job.
- Understand the implications of unemployment benefits on job search behavior.
Verified Answer
JS
Joshua SanchezJun 19, 2024
Final Answer :
A
Explanation :
Increasing unemployment benefits can reduce the incentive for individuals to actively seek employment because they may rely on the benefits instead of actively looking for work. This can lead to longer periods of unemployment, which can have negative impacts on both the individual and the economy as a whole.
Learning Objectives
- Understand the implications of unemployment benefits on job search behavior.