The Most Important Way in Which Unemployment Insurance Benefits Can

Multiple Choice

The most important way in which unemployment insurance benefits can have the effect of raising the rate of unemployment is by:

A) raising the cost of employing labour through the channel of payroll taxes to fund the program.
B) reducing the benefits gained from working.
C) encouraging workers to quit their jobs.
D) reducing the cost of job search, thus prolonging jobless durations.
E) encouraging workers to work part time.