Question 1 1 Point In The Figure Suppose That Unemployment Benefits Of 5 Per Hour Are Introduced Which Of The Follo 1 (194.87 KiB) Viewed 11 times
Question 1 1 Point In The Figure Suppose That Unemployment Benefits Of 5 Per Hour Are Introduced Which Of The Follo 2 (259.1 KiB) Viewed 11 times
Question 1 (1 point) In the figure, suppose that unemployment benefits of $5 per hour are introduced. Which of the following are true in this situation? Hourly wage = $ 12 Disutility of an hour of effort = $2 2 = What the worker gets should she not lose her job today --- What the worker gets should she lose her job today Expected duration of unemployment 44 weeks (1540) birs)
If the unemployment benefit stops after the first 22 weeks of unemployment, the total employment rent over the expected duration of unemployment is $3850. None of these are correct If the unemployment benefit is now $5 per hour again, but the disutility of an hour of effort has now fallen to zero, the employment rent per hour will be $5 per hour while the benefit is received, and $7 per hour thereafter. If the unemployment benefit is lowered to $3 per hour but extended to the first 30 weeks of unemployment, the employment rent over the expected duration of unemployment will be higher than when there is a $5 per hour benefit for 22. weeks.
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