Which of the following would not increase the asking wage?
A) The government expands unemployment insurance benefits from 26 to 52 weeks.
B) The government increases the maximum weekly unemployment benefit from $500 to $800.
C) The unemployment rate increases.
D) One's spouse receives a pay raise.
E) The government stops taxing unemployment insurance benefits.

Question

Quizplus · Accepted Answer

An increase in the unemployment rate typically leads to more competition for jobs, which can pressure individuals to accept lower wages rather than higher ones. The other options (A, B, D, E) would likely increase the asking wage because they either directly increase the financial security of the unemployed (through enhanced benefits) or indirectly increase household income, reducing the immediate need for employment.

Which of the Following Would Not Increase the Asking Wage