What is the primary purpose of Employment Insurance (EI)?a) To provide financial assistance during unemployment. b) To offer retirement benefits. c) To cover medical expenses. d) To contribute to housing costs.

Employment Insurance is a government-mandated employment-related benefit.Question 9Answera.FALSEb.TRUE

The purpose of insurance is to:Develop a savings planProvide an investment opportunityTransfer financial riskAll of the above

The primary function of insurance is to maintain yourexisting level of wealth.

Jeannette is planning to quit her job and live on employment insurance (EI) benefits for a while. What would you advise Jeannette? A.EI will pay only for the period until Jeannette finds a new job.B.EI will not pay if a person quits a job for no good reason.C.EI will only pay for two weeks if a person quits a job without a reason.D.EI will not pay unless the person is fired for cause.

Consider the following two proposals to reform unemployment insurance. Explainthe arguments for and against each reform.(a) The insurance payment would be increased so that it replaced 100% of aworker’s regular labour income for up to 26 weeks.(b) Each worker would be paid a lump sum equal to 10 weeks of his or her labourincome at the start of the spell of unemployment. There would then be no otherpayments