Answered

Discover a wealth of knowledge at Westonci.ca, where experts provide answers to your most pressing questions. Get detailed and accurate answers to your questions from a community of experts on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from a wide range of professionals on our user-friendly platform.

Understanding that unemployment benefits give workers the incentive to not look for work until their benefits run out, suppose an economist suggested that instead of giving workers up to 26 weeks of unemployment benefits that end once the person finds work, a person who loses his or her job would just get a single big check for 26 weeks of benefits, regardless of how long the worker is unemployed. Which of the following are true?
1. It is likely to reduce unemployment by increasing the incentives to look for work earlier.
2. It would be costly.
3. It would reduce the incentive to work.
4. It would have to be combined with skill training.

Sagot :

Answer:

1. It is likely to reduce unemployment by increasing the incentives to look for work earlier.

2. It would be costly.

Explanation:

A worker who had received the benefits of unemployment has now added incentive for looking in to work earlier. But the cost will increase since the incentive provided for the entire period of the 52 weeks which is not limited to the period of how long the person took to get employment again.

So it is most likely to decrease the unemployment by an increase in the incentive to look for work again. And it this would also increased the cost.

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.