The diagram above illustrates Maria's employment rent for a given amount of effort and a $15 wage in an economy
with an unemployment benefit of $6 of unlimited duration. Once unemployed Maria expects to find a new job with the same wage in 44 weeks. Which statement correctly describes Maria's situation?
a. Maria does not necessarily prefer to be employed as she experiences disutility of effort when employed.
b. Maria does not want to lose her job because she receives employment rent if she remains employed.
c. Maria's total employment rent is $23,100.
d. Maria is better off by $9 per hour when she is employed than when unemployed.
e. Maria's disutility from not having a job is $3 per hour.
a.Maria does not necessarily prefer to be employed as she experiences disutility of effort... View the full answer