Unemployment insurance is often criticized because workers can extend the amount of time they are unemployed and thus increase the cost of the program.This phenomenon is best described as

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Moral hazard refers to the situation where individuals take risks or engage in behavior that they wouldn't have otherwise, because they are protected from the consequences of their actions. In the case of unemployment insurance, workers may be more likely to stay unemployed for longer periods, or be less motivated to find a job, because they know they are receiving benefits. This increases the cost of the program, as more people are claiming benefits for longer periods of time.

Unemployment Insurance Is Often Criticized Because Workers Can Extend the Amount