When unemployment insurance benefits exceed the wages a worker could earn when employed, the worker will have an incentive to:
A)remain unemployed longer than otherwise.
B)have his/her unemployment insurance benefits cancelled.
C)accept the first job offered.
D)decrease his/her reservation price.

Question

Quizplus · Accepted Answer

The more generous are unemployment benefits, the less hurried job seekers are. This lengthens periods of unemployment.

When Unemployment Insurance Benefits Exceed the Wages a Worker Could