An Advantage of Unemployment Compensation Is That Because It Is

question 122

True/False

An advantage of unemployment compensation is that because it is funded by a tax on employers,state unemployment funds are able to remain solvent during economic downturns.

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Definitions:

MU/P Ratio

The ratio of marginal utility (MU) to price (P), used to determine the optimal consumption point where consumer satisfaction per unit of cost is maximized.

Marginal Utility

The heightened benefit received from using one more unit of a good or service.

Marginal Utility Per Dollar

The additional satisfaction obtained from spending one more dollar on a good or service.