The government of Eduland provided generous unemployment benefits to all the unemployed workers. However, the new government that came into power reduced the amount of unemployment insurance paid to each worker
This increased the average number of hours spent daily by unemployed workers in looking for jobs. This suggests that ________ exists in the labor market in Eduland. A) the problem of moral hazard
B) a tragedy of the commons
C) a pecuniary externality
D) a positive externality
A
You might also like to view...
A statement of assets and liabilities of any business entity is called
A) a balance sheet. B) an income statement. C) a statement of net worth. D) a cash flow statement.
Suppose workers and employers agree to a three-year wage contract under the expectation of 3 percent inflation, but inflation turns out to be 1 percent. In this case, ________ lost purchasing power, and ________ gained purchasing power.
A. no one; employers B. workers; employers C. employers; workers D. employers; no one