Question

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

Answer 1

Answer:

A. They increase the opportunity cost of job search

Explanation:

Unemployment is when a person able & willing to do a job fails to get a job. Opportunity Cost is the cost of next best alternative foregone while choosing an alternative.

Opportunity Cost of job is the : free leisure time & unemployment insurance payment - sacrifised while doing a job. Increase in unemployment insurance payment increases the opportunity cost of job search. This is likely to increase the unemployment rate , as mentioned in the question statement.