Question

Ensuring the financial solvency of individuals during periods of temporary unemployment and following work-related injuries helps to do which of the following?
A) promote tax revenue.
B) promote the well-being of the economy.
C) provide competitive advantage to some employers, but not to others.
D) enhance organizational commitment.

Answer 1

Answer:

The correct answer is B) promote the well-being of the economy

Explanation:

Keeping temporarily unemployed and injured people with cash will help maintian aggregate demand, because those people will use the cash to buy goods and services, in other words, to consume, and private consumption is the biggest part of Gross Domestic Product.

It will also help mainting social stability because people who do not have money to meet their needs may resort to criminal activities, or might have to live off others, like parents or friends, which would further strain the economy.