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Which of the following statements is false? (A) Because of moral hazard, unemployed workers do not exert as much effort seeking a new job as
Which of the following statements is false? (A) Because of moral hazard, unemployed workers do not exert as much effort seeking a new job as they would have done without the unemployment insurance. (B) Efficiency wages are wages that are set below the market-clearing level to increase workers' effort. (C) Moral hazard is present in the problem facing unemployed workers because an individual's efforts to find a job are private information. (D) To reduce moral hazard, the government sometimes introduce taxes to curb risky behaviors, such as the tax on cigarettes or alcohol
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