How Does the Asking Wage Depend on the Unemployment Insurance

question 1

Multiple Choice

How does the asking wage depend on the unemployment insurance system in the United States?

• A)The asking wage is constant regardless of the unemployment insurance system.
• B)The asking wage will fall as the unemployed worker gets closer to exhausting his or her UI benefits.
• C)The asking wage is lower while receiving UI benefits than it is when not receiving UI benefits.
• D)The asking wage is lower the more likely it is to receive a job offer.
• E)The asking wage is lower the more skills the unemployed worker has.

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Definitions:

Consumption Tax

A levy imposed on the acquisition of goods and services, charged at the time of purchase.

Income Tax

A charge imposed by authorities on the earnings of individuals and enterprises operating within their territory.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much of an additional dollar earned will be taken in taxes.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of tax paid by the total income.