Most economists would agree that eliminating unemployment insurance would
A)increase unemployment because people would quit jobs they thought were not secure.
B)increase unemployment because if the government didn't provide unemployment insurance, private firms would offer superior insurance.
C)reduce unemployment and so improve economic well-being.
D)reduce unemployment, but they disagree about whether economic well-being would be enhanced by such a change.

Question

Quizplus · Accepted Answer

Eliminating unemployment insurance would likely reduce unemployment because it would incentivize people to find jobs more quickly. However, economists disagree on whether this would improve economic well-being, as unemployment insurance provides a safety net that can help maintain consumption and reduce poverty during job transitions.

Most Economists Would Agree That Eliminating Unemployment Insurance Would