Suppose workers currently receiving unemployment compensation were given a financial reward contingent on finding a job quickly.For example,Washington state at one time provided $562 for workers who became reemployed within 13 weeks.Economic theory suggests that such a "reward" scheme should:
A)reduce job search duration by shifting the wage offer distribution to the left
B)reduce job search duration by decreasing the acceptance wage and intensifying job search
C)reduce job search duration by shifting the wage offer distribution to the right
D)have no effect on job search duration,as the acceptance wage will decrease to offset the effect of the shifting wage offer distribution

Question

Quizplus · Accepted Answer

According to economic theory, offering a financial reward for finding a job quickly would reduce job search duration by decreasing the acceptance wage and encouraging job search. This is because workers would be more motivated to accept lower wages, intensify their job search efforts, and accept jobs that they might have otherwise turned down. Therefore, Choice B is the correct answer.

Suppose Workers Currently Receiving Unemployment Compensation Were Given a Financial