Which of the following statements most closely describes the variation in unemployment rates across countries in Europe?
A) Countries with higher rates of unionization tend to have higher unemployment rates, but this is partially mitigated if wage negotiations are coordinated among employers.
B) Countries with higher rates of unionization tend to have higher unemployment rates and this tendency is exacerbated if wage negotiations are coordinated among employers.
C) Countries with more generous unemployment insurance benefits tend to have higher unemployment rates, but this is partially mitigated if the benefits are offered for a longer period of time.
D) Countries with more generous unemployment insurance tend to have lower unemployment rates, but this effect is completely offset if benefits are offered for a longer period of time.

Question

Quizplus · Accepted Answer

Countries with higher rates of unionization often have higher unemployment rates, but coordinated wage negotiations can mitigate this effect by preventing wage-setting practices that could lead to unemployment. This coordination among employers can lead to more stable employment conditions.

Which of the Following Statements Most Closely Describes the Variation