Unemployment Insurance Increases the Amount of Frictional Unemployment By

question 118

Multiple Choice

Unemployment insurance increases the amount of frictional unemployment by:

• A) making workers more frantic in their search for new jobs.
• B) inducing workers to accept the first job offer that they receive.
• C) making employers more reluctant to lay off workers.
• D) softening the economic hardship of unemployment.

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Definitions:

Increase in Demand

A shift of the demand curve to the right, indicating that consumers are willing and able to purchase more of a good or service at every price.

Supply Curve

A pictorial display indicating how the price of an item affects the quantity of the item sellers are eager to sell.

Cost of Production

The total expenses incurred in the manufacture of a product, including raw materials, labor, and overhead costs.

Quantity Demanded

Quantity demanded refers to the total amount of a good or service consumers are willing to purchase at a specific price point, at a given time.