employment rent. If Maria loses her job, her government provides an unemployment benefit for up to 20 weeks. Hourly wage = $12 Unemployment benefit plus the disutility of effort-$8 Unemployment benefit - $6 0 - what Maria gets should she not lose her job today →what Maria gets should she lose her job today Maria's rent when employed Employment rent per hour Disutility of effort when employed Reservation wage per hour What Maria receives in unemployment benefit during her period of unemployment 0 Number of 35-hour weeks Expected duration of unemployment -4 weeks Which of the following statements correctly explains the diagram above? O a. Maria's employment rent will be higher if the unemployment benefit is higher. O b. Maria's employment rent will be reduced in the situation where the Which of the following statements correctly explains the diagram above? O a. Maria's employment rent will be higher if the unemployment benefit is higher. O b. Maria's employment rent will be reduced in the situation where the unemployment rate is higher. O c. Maria is not enjoying any employment rent because she is able to find a new job in four weeks. d. Maria's total unemployment rent is $24. Oe. This model does not account for certain costs involved in employment such as commuting costs. Hourly wages ($)
employment rent. If Maria loses her job, her government provides an unemployment benefit for up to 20 weeks. Hourly wage = $12 Unemployment benefit plus the disutility of effort-$8 Unemployment benefit - $6 0 - what Maria gets should she not lose her job today →what Maria gets should she lose her job today Maria's rent when employed Employment rent per hour Disutility of effort when employed Reservation wage per hour What Maria receives in unemployment benefit during her period of unemployment 0 Number of 35-hour weeks Expected duration of unemployment -4 weeks Which of the following statements correctly explains the diagram above? O a. Maria's employment rent will be higher if the unemployment benefit is higher. O b. Maria's employment rent will be reduced in the situation where the Which of the following statements correctly explains the diagram above? O a. Maria's employment rent will be higher if the unemployment benefit is higher. O b. Maria's employment rent will be reduced in the situation where the unemployment rate is higher. O c. Maria is not enjoying any employment rent because she is able to find a new job in four weeks. d. Maria's total unemployment rent is $24. Oe. This model does not account for certain costs involved in employment such as commuting costs. Hourly wages ($)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Maria works for a restaurant as a waitress. The following illustrates Maria's
employment rent. If Maria loses her job, her government provides an
unemployment benefit for up to 20 weeks.
Hourly wage - $12
Unemployment
benefit plus the
disutility of effort-$8
Unemployment benefit - $6
0
- what Maria gets should she not lose her job today
→what Maria gets should she lose her job today
Employment rent
Maria's rent
when employed
per hour
Disutility of effort
when employed
Reservation wage
per hour
What Maria receives
in unemployment
benefit during her
period of unemployment
0
Number of 35-hour weeks
Expected duration of unemployment
-4 weeks
Which of the following statements correctly explains the diagram above?
O a. Maria's employment rent will be higher if the unemployment benefit
is higher.
O b. Maria's employment rent will be reduced in the situation where the
Which of the following statements correctly explains the diagram above?
O a. Maria's employment rent will be higher if the unemployment benefit
is higher.
O b. Maria's employment rent will be reduced in the situation where the
unemployment rate is higher.
O c. Maria is not enjoying any employment rent because she is able to
find a new job in four weeks.
Od.
Maria's total unemployment rent is $24.
e.
This model does not account for certain costs involved in
employment such as commuting costs.
Hourly wages (S)
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