There is evidence that unemployment insurance and other safety-net programs _____
A) may increase unemployment.
B) increase the incentives to find work.
C) motivates Americans search harder and wider for a job.
D) increase labor supply.
E) decreases fraud.

Question

Quizplus · Accepted Answer

Unemployment insurance and other safety-net programs can increase unemployment by providing financial support that may reduce the urgency for unemployed individuals to find new work, potentially leading to longer periods of unemployment.

There Is Evidence That Unemployment Insurance and Other Safety-Net Programs