According to Most Economists, Which of the Following Would Be

question 90

Multiple Choice

According to most economists, which of the following would be an effect of eliminating unemployment insurance?

• A)It would cause an increase in unemployment because people would quit jobs they thought were not secure.
• B)It would cause an increase in unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance.
• C)It would cause a decrease in unemployment and an improvement in economic well-being.
• D)It would cause a decrease in unemployment, but economists disagree about whether economic well-being would be enhanced by such a change.

Distinguish between moral hazard and adverse selection.

Identify the impact of safety measures and monitoring on behavior change.

Evaluate the financial implications of installing safety equipment in the workplace.

Assess the effects of various types of insurance policies on individual behavior.

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Definitions:

Regulations

Standards and rules formulated by governmental or nongovernmental organizations to govern conduct within certain spheres of activity.

Pollution Permits

Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.

Corrective Tax

A tax designed to induce private decision-makers to take account of the social costs that arise from a negative externality.

Government

The system or group of people governing an organized community, often a state, with the authority to make and enforce laws, policies, and decisions.