32
practice examMultiple Choice

Practice Exam

Question 32 • Personal Finance

How does unemployment insurance help when businesses lay off workers during downturns?

Answer
A
increases wages
B
prevents layoffs
C
guarantees jobs
D
provides temporary income

Explanation

Unemployment insurance provides temporary income to eligible workers who lose their jobs, helping them cover basic expenses while they look for new work. It does not prevent businesses from laying workers off or guarantee that workers will get another job. The correct choice is provides temporary income.

AI-written and checked against the verified answer.

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