How does the asking wage depend on the unemployment insurance (UI) system in the United States?
A) The asking wage is constant regardless of the unemployment insurance system.
B) The asking wage will fall as the unemployed worker gets closer to exhausting his or her UI benefits.
C) The asking wage is lower while receiving UI benefits than after one's UI benefits have expired.
D) The asking wage is lower the more likely it is to receive a job offer.
E) The asking wage is lower the more skills the unemployed worker has.

Question

Quizplus · Accepted Answer

The asking wage tends to fall as the unemployed worker gets closer to exhausting their UI benefits because the urgency to find employment increases as the financial cushion provided by UI diminishes.

How Does the Asking Wage Depend on the Unemployment Insurance