Which of the Following Is Characteristic of the Relationship Between

question 58

Multiple Choice

Which of the following is characteristic of the relationship between unemployment insurance and job-search effort?

• A)Unemployment insurance raises structural unemployment because it reduces the job search of the unemployed.
• B)Most economists are sceptical of the value of unemployment insurance because they believe that it results in a poorer match between workers and jobs.
• C)A typical unemployed worker near the end of the time in which he or she can receive benefits increases job-search efforts.
• D)Unemployed people need to put less job-search effort now than they did in 1971 because in 1971 the conditions to receive unemployment benefits were stricter than today.

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Definitions:

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.

SUTA Tax

State Unemployment Tax Act; a tax that employers are required to pay to the state government to fund unemployment benefits for workers who lose their jobs.

Cumulative Earnings

The total amount of net income earned by a company over its entire existence.

Net Pay

Net pay refers to the amount of money an employee takes home after all deductions, such as taxes and retirement contributions, have been subtracted from their gross salary.