Question

Two management students, Frank and Neil, discuss the pros and cons of employee benefits. Frank states that unemployment insurance is more advantageous to employees than it is to employers, while Neil argues that employers receive more rewards from it. Which of the following weakens Neil's argument? (A) Unemployment insurance provides employers a competitive advantage in the talent market.(B) The amount of an employer's unemployment insurance tax depends on the number of employees.(C) Federal and state taxes paid by employers fund most of unemployment insurance.(D) Unemployment insurance does not provide assistance to unemployed workers looking for new jobs.(E) Unemployment insurance does not include payment to offset lost income during voluntary unemployment.

Answer 1

Answer:

(C) Federal and state taxes paid by employers fund most of unemployment insurance.

Explanation:

If employers choose to pay for an unemployment insurance, they will be paying for something the State is already providing with the money paid by the employers' taxes too. So it's like paying twice for something the employees will receive also twice, from the State on the one hand and if they get fired they collect the insurance that employers pay directly. So, if we take this statement (point C) and under this consideration, the employees will receive more benefits from this insurance while employers pay twice.