If the U.S. system of unemployment insurance did not 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 face seasonal cycles of unemployment would be paid higher wages.

Question

Quizplus · Accepted Answer

Without unemployment insurance, employers would likely have to offer higher wages to attract workers to jobs with seasonal unemployment, as workers would be taking on more risk of income loss during off-season periods. This compensates for the lack of income security provided by unemployment insurance.

If the US System of Unemployment Insurance Did Not Exist, One Would