Question

How do unemployment insurance payments in the United States and social insurance programs in other countries increase the unemployment​ rate? A. The payments are costly and firms are forced to lay off workers. B. They are paid as long as the unemployed person remains unemployed. C. They increase the opportunity cost of job search. D. They decrease the opportunity cost of job search.

Answer 1

C. They increase the opportunity cost of job search.

Step-by-step explanation:

Unemployment insurance is a benefit offered by the government to workers who have been laid off without cause to assist them in finding a new job. Getting unemployment insurance money is a welcome "relief" for those who have lost their jobs.

However, unemployment insurance can lead to higher unemployment rates in the country, because those who are receiving unemployment insurance may be "accommodated" and not look for a new job, that is, one can forego the opportunity for a new job. employment while receiving insurance. With this we can say that unemployment insurance increases the opportunity cost of job search. For the opportunity cost is the cost of something in terms of a waived opportunity.