If Ajax Incorporated is a very unstable employer that frequently lays off workers, it will prefer to locate its plants in states
A) with perfect experience rating of unemployment insurance tax rates.
B) with imperfect experience rating such that once its layoffs increase beyond a certain level, it does not have to pay a higher unemployment insurance tax rate.
C) with imperfect experience ratings such that once its layoffs fall below a certain level, it pays the same minimum unemployment insurance tax rate.
D) with imperfect experience ratings such that above a certain level, the unemployment tax rate increases more than in proportion to layoffs.
Correct Answer:
Verified
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