An increase in unemployment benefits is likely to do which of the following?
A)reduce a person's incentive to look for work
B)reduce the opportunity cost of being unemployed
C)provide a better safety net for employed families
D)make it more difficult for people to search longer for jobs appropriate to their skill levels
E)increase the need to accept the first job available after becoming unemployed

Question

Quizplus · Accepted Answer

An increase in unemployment benefits can reduce a person's incentive to look for work as they may be able to collect more money from unemployment benefits than they would earn in a low-paying job. This can lead to prolonged unemployment and a decrease in labor force participation.

An Increase in Unemployment Benefits Is Likely to Do Which