One argument against unemployment insurance is that unemployment insurance
A) limits the effects of a recession.
B) is only available during recessions.
C) creates an indirect incentive that can make it less attractive for workers to stay unemployed.
D) can be extended by the government during times of recession.
E) creates an indirect incentive that can make it more attractive for workers to stay unemployed.

Question

Quizplus · Accepted Answer

Unemployment insurance can create an indirect incentive for workers to stay unemployed as they may prefer to receive benefits rather than finding a new job. This can lead to longer periods of unemployment and a decreased incentive to actively search for employment.

One Argument Against Unemployment Insurance Is That Unemployment Insurance