Unemployment benefits may increase the unemployment rate because unemployment benefits ?
Correct answer: B. reduce the cost of job search
- A. encourage people to quit their jobs
- B. reduce the cost of job search
- C. enable people to quit searching for work
- D. reduce the benefits of additional job searching
Explanation
Benefits can reduce the financial pressure to accept the first available job, allowing workers to search longer and raising the measured duration of unemployment. This is commonly described as reducing the cost of job search.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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