Suppose an economist, realizing that unemployment benefits create an incentive for workers to wait until their benefits run out, proposes an upfront benefit payment. Specifically, instead of giving a newly unemployed worker up to fifty-two weeks of benefits that end when work is found, a single big cheque equal to fifty-two weeks of benefits is provided upfront. Workers can keep the full amount regardless of how long they end up being unemployed. Which of the following are true? Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. ? It is likely to reduce unemployment by increasing the incentives to look for work earlier. ? It would be costly. ? It would reduce the incentive to work ? It would have to be combined with skill training.

Suppose an economist, realizing that unemployment benefits create an incentive for workers to wait until their benefits run out, proposes an upfront benefit payment. Specifically, instead of giving a newly unemployed worker up to fifty-two weeks of benefits that end when work is found, a single big cheque equal to fifty-two weeks of benefits is provided upfront. Workers can keep the full amount regardless of how long they end up being unemployed. Which of the following are true? Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. ? It is likely to reduce unemployment by increasing the incentives to look for work earlier. ? It would be costly. ? It would reduce the incentive to work ? It would have to be combined with skill training.

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter8: Economic Fluctuations, Unemployment, And Inflation

Section: Chapter Questions

Problem 11CQ

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