Question

1. Is it rational for a laid-off worker to remain unemployed when the dollar amount of unemployment benefits is greater than he or she would earn from working? Explain briefly.

Answer 1

Laid off workers are the workers whom employer has closed the business all move to other place,

So laid of workers are the workers which are displaced from the work.

It is not rational for a laid off worker to remain unemployed when the dollar amount of unemployment benefit is greater then he or she would be earning from working.

It is assumed to be irrational because of the several reasons:

First if you remain unemployed he would not contribute anything to the economy he is the burden for economic because he is earning nothing but consuming the money of government.

This is the loss when we see from the economic point of view.

even when we see at individual point of view it is irrational because it will create boredom for the the labour, not only this: he would only get a constant amount of money, so there is no chance of growth for himself.

Other than this when he is nothing to do , he / she may engaged in bad activities, illegal activities domestic violence etc.