If the US System of Unemployment Insurance Didn't Exist, One Would Predict

question 8

Multiple Choice

If the U.S. system of unemployment insurance didn't exist, one would predict that

• A)workers would never become unemployed.
• B)workers who became unemployed would remain unemployed for longer durations.
• C)no worker would accept a job that is associated with seasonal unemployment.
• D)seasonal unemployment would cease to exist.
• E)workers in jobs that have high risks of unemployment or in jobs that face seasonal cycles of unemployment would be paid higher wages.

Define and differentiate between command economies and laissez-faire economies.

Explain the principle of price as a coordinating mechanism in a laissez-faire economy.

Understand that pure forms of laissez-faire and command economies do not exist in reality.

Identify the tools and signals in a laissez-faire economy that provide individuals with the information needed to make decisions.

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Definitions:

Evict Tenants

The legal process through which a landlord may remove a tenant from rental property, typically due to failure to abide by the rental agreement.

Lease Agreement

A contract specifying the terms under which one party agrees to rent property owned by another party.

Rent Control

Government-imposed limits on the amount of rent a landlord can charge for residential housing, aimed at making housing more affordable for tenants.

Security Deposit

A sum of money held by a landlord or lender as a safeguard against damage or non-payment, to be returned or applied appropriately after certain conditions are met.