One argument against unemployment insurance is that it:
A) limits the effects of a recession.
B) is only available during recessions.
C) creates an indirect incentive that can make it less attractive for workers to stay unemployed.
D) can be extended by the government during times of recession.
E) creates an indirect incentive that can make it more attractive for workers to stay unemployed.

Question

Quizplus · Accepted Answer

Unemployment insurance provides financial assistance to workers who have lost their jobs, which can create an unintended incentive for some individuals to remain unemployed for longer periods than they otherwise would if they did not have the benefit of this support. This, in turn, can increase the overall level of unemployment in the economy.

One Argument Against Unemployment Insurance Is That It