Which of the following statements is true? Select one correct answer. a. If workers continue to receive benefits however long they remained unemployed, an increase in the level of... Which of the following statements is true? Select one correct answer. a. If workers continue to receive benefits however long they remained unemployed, an increase in the level of unemployment will have no effect on the best response curve. b. If unemployment benefits decrease, the minimum cost of effort for the employer will rise. c. If the wage doesn't change, employees will work harder in periods of high unemployment. d. If an employee's disutility of effort increases, the reservation wage will rise.
Understand the Problem
The question asks which statement regarding unemployment benefits and employment dynamics is true. It presents four possible statements to analyze their accuracy in the context of economics.
Answer
If the wage doesn't change, employees will work harder in periods of high unemployment.
The final answer is c. If the wage doesn't change, employees will work harder in periods of high unemployment.
Answer for screen readers
The final answer is c. If the wage doesn't change, employees will work harder in periods of high unemployment.
More Information
When unemployment rates are high, there is more competition for jobs, which often leads workers to exert more effort to retain their positions or be more appealing to employers.
Tips
A common mistake is not considering the relationship between unemployment rates and worker behavior.
Sources
- Chegg - Question and Answer - chegg.com
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