According to research by Wang and Williamson,the optimal Employment Insurance program
A) could be implemented with EI accounts, but the welfare gains are relatively small.
B) could be implemented with EI accounts and the welfare gains are large.
C) could not be implemented but the welfare gains are large.
D) is independent of the moral hazard problem.
E) looks very similar to the existing program in Canada.

Question

Quizplus · Accepted Answer

Wang and Williamson's research suggests that implementing an Employment Insurance program with EI accounts is optimal. However, the welfare gains from implementing this program are relatively small. Therefore, option A is the best choice. Option B is incorrect because while implementing an EI program with EI accounts may result in large welfare gains, the research found that the gains are relatively small. Option C is incorrect because the research did not suggest that the EI program could not be implemented. Option D is incorrect because the moral hazard problem was not discussed in the research. Option E is also incorrect because the research did not specify that the optimal program looks like the existing program in Canada.

According to Research by Wang and Williamson,the Optimal Employment Insurance