18. Why does Employment Insurance cause unemployment? (A) It increases the price of labour by mandating a minimum. (B) It incentivizes the unemployed to remain so. (C) It reduces the demand for labour. (D) It releases currency into the economy.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter21: Unemployment
Section: Chapter Questions
Problem 8RQ: What is the difference between being unemployed and being out of the labor force?
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18. Why does Employment Insurance cause unemployment?
(A) It increases the price of labour by mandating a minimum.
(B) It incentivizes the unemployed to remain so.
(C) It reduces the demand for labour.
(D) It releases currency into the economy.
Transcribed Image Text:18. Why does Employment Insurance cause unemployment? (A) It increases the price of labour by mandating a minimum. (B) It incentivizes the unemployed to remain so. (C) It reduces the demand for labour. (D) It releases currency into the economy.
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