The Employment Insurance Program Has Which of the Following Effects

question 24

Multiple Choice

The Employment Insurance program has which of the following effects?

• A)It decreases the amount of personal income of the unemployed.
• B)It contributes to the severity of a recession or economic downturn.
• C)It increases the amount of time spent searching for a job.
• D)It lowers the overall unemployment rate.
• E)It reduces structural unemployment.

---

Definitions:

Life-cycle Pattern

A theory suggesting that individuals plan their consumption and savings behavior over their lifetime, taking into account expected income changes and retirement needs.

Income Variation

Fluctuations in an individual's or household's income due to factors like employment changes, investment returns, or economic conditions.

Annual Income

The total amount of income received over a one year period from all sources including wages, salaries, benefits, dividends, and interest.

Total Utility

The total satisfaction or benefit a consumer receives from consuming a particular quantity of goods and services.