What Are the Effects of EI System on Labour Supply

question 15

Multiple Choice

What are the effects of EI system on labour supply, based on the income-leisure choice model?

• A) More-generous EI will decrease labour force participation but increase weeks worked.
• B) More-generous EI will increase labour force participation and increase weeks worked.
• C) More-generous EI will decrease labour force participation and decrease weeks worked.
• D) More-generous EI will increase labour force participation but the effect on weeks worked is ambiguous.
• E) More-generous EI will increase labour force participation but decrease weeks worked.

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Definitions:

Social Communication Model

A framework for understanding how information is exchanged and processed within social contexts and platforms.

Productivity

The measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.

Decoding

The process of interpreting or understanding communication messages, symbols, or encoded information.

Encoding

The process of converting information or ideas into a symbolic form that can be conveyed through communication.