Economics (AS & A Level) · May / June 2024 · Paper 32 · Question 18
9708Addressing income and wealth inequality
Which statement relating to unemployment benefits provided by a government is not valid?
- AThey allow firms to dismiss workers as unemployment benefits provide support to unemployed workers.
- BThey force firms to raise wages to encourage workers to work rather than relying on unemployment benefits.
- CThey provide a safety net to workers which might reduce their efforts to find a suitable job.
- DThey increase government spending and force it to raise taxes.
As printed in the paper
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Correct answer: B. They force firms to raise wages to encourage workers to work rather than relying on unemployment benefits.
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