Explain how the existence of unemployment compensation may actually result in a higher unemployment rate than would otherwise occur if there where no such compensation in the first place
What will be an ideal response?
The existence of unemployment compensation reduces the opportunity cost of looking for work. Job searchers may take longer looking for work under such a system. However, without any unemployment compensation job seekers may choose to accept job offers more quickly in order to "pay the bills" since they are not receiving compensation while they are searching for work. In a nutshell the opportunity cost of searching is very high and they may prefer to end their job search much more quickly.
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Monopolies that price discriminate do so because
A) they are able to do so and no one else can. B) they can increase their profits. C) it keeps them out of trouble with the government. D) it is more efficient.
How would a $10 increase in per-unit input costs affect a price-taking firm's supply curve?
A. MC would increase by $10, and AC would decrease by $10.
B. AC would increase by $10, and MC would decrease by $10.
C. MC and AC would both decrease by $10.
D. MC and AC would both increase by $10.