In the Two-Sided Search Model, the Expected Payoff to Searching

question 27

Multiple Choice

In the two-sided search model, the expected payoff to searching for work

• A)increases with the employment insurance benefit and decreases with the market wage.
• B)decreases with the employment insurance benefit and increases with the market wage.
• C)decreases with labour market tightness.
• D)depends on the reservation wage.
• E)increases with the employment insurance benefit and increases with the market wage.

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Definitions:

Flagellum

A slender, whip-like appendage that enables many protozoa, bacteria, and spermatozoa to swim.

Microvilli

Minute projections of the plasma membrane that increase the surface area of the cell; found mainly in cells concerned with absorption or secretion, such as those lining the intestine or the kidney tubules.

Choanoflagellate

Single-celled organisms that are considered to be the closest living relatives of animals, characterized by a flagellum surrounded by a collar of microvilli.

Rhizaria

A supergroup of mainly unicellular eukaryotes, characterized by their amoeboid movement mechanism and often elaborate shells.