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:

Market Price

The contemporary price at which the market allows an asset or service to be bought or sold.

Rights Offering

A mechanism in finance, particularly in stock markets, where companies offer existing shareholders the right to buy additional shares at a discounted price before selling them to the public.

Subscription Price

The cost at which existing shareholders can purchase additional shares of stock in a company before it is offered to the public.

Market Price

The cost at which the marketplace is currently trading assets or services.