Which of the Following Statements About Unemployment Benefits Is Correct

question 51

Multiple Choice

Which of the following statements about unemployment benefits is correct?

• A)Unemployment benefits reduce search efforts but raise unemployment
• B)Unemployment benefits increase the income uncertainty that workers face
• C)Unemployment benefits improve the ability of the economy to match each worker with the most appropriate job
• D)Unemployment benefits do not protect workers against income loss

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Definitions:

Vertical Merger

Occurs when a company acquires another firm that is “upstream” or “downstream”; for example, an automobile manufacturer acquires a steel producer.

Petrochemical Firm

A company involved in the production of chemical products derived from petroleum and natural gas.

Oil Reserves

Quantified estimates of the amount of crude oil located in a specific economic region that can be recovered and sold under current economic and technological conditions.

Hostile Takeovers

Attempts by a company to acquire another company against the wishes of the target company's management and board of directors.