Question

Government policies directed at reducing frictional unemployment include:

increasing the earned income credit.

abolishing minimum-wage laws.

making unemployment insurance 100 percent experience rated.

making government part of the union–firm wage bargaining process.

Answer 1

The Answer is Option 3-Making unemployment insurance 100 percent experience rated.

• Unemplyement insurance is an amount of insurance paid to employees by the state after labours lose their jobe and meet certain eligibility criterias.
• Experienced rating is the criteria for filtering unemployment insurance claims.
• In this method it measures the weightage of loss of unemployed insured compared to other insured the same.
• So this method ensures the eligibility of insured and eliminates the chances for exploiting the unemployment insurance by frictional unemployment

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