According to Research by Wang and Williamson,the Optimal Employment Insurance

question 29

Multiple Choice

According to research by Wang and Williamson,the optimal Employment Insurance program

• A) should depend only on the history of unemployment.
• B) should depend on the entire history of employment and unemployment
• C) should be independent of employment histories but dependent on unemployment histories.
• D) should depend only on the most recent employment spell.
• E) should depend on the entire employment history, but not unemployment histories.

---

Definitions:

Market Equilibrium

The state in which the supply and demand for a good or service are balanced, leading to a stable price.

Consumer Surplus

The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Consumer Surplus

The difference between the total amount that consumers are willing to pay for a good or service and the total amount they actually do pay.