Which of the following would decrease the unemployment rate?
A)an increase in the minimum wage
B)an increase in the efficiency wage
C)an increase in labour union membership
D)government aid to retrain unemployed workers
E)an increase in the generousity of Employment Insurance payments

Question

Quizplus · Accepted Answer

Providing government aid to retrain unemployed workers would help them acquire new skills, making them more employable and thus reducing the unemployment rate. The other options may have different impacts on employment or may not have a direct impact at all. For example, increasing the minimum wage (A) may lead to fewer job opportunities for low-skilled workers and actually increase unemployment. Increasing the generosity of Employment Insurance payments (E) may discourage workers from actively seeking employment. Increasing the efficiency wage (B) may improve productivity but does not directly affect the number of unemployed individuals. Increasing labor union membership (C) may improve working conditions and job security for members but does not necessarily result in lower unemployment rates.

Which of the Following Would Decrease the Unemployment Rate