High unemployment rates in Europe are believed to be due to all of the following government practices except
A) establishing numerous business regulations
B) providing generous welfare benefits and unemployment insurance
C) legislating relatively low employment taxes for employers
D) maintaining minimum wage rates which are above the market-equilibrium level

Question

Quizplus · Accepted Answer

High unemployment rates in Europe are often attributed to factors that can discourage hiring or business growth, such as extensive business regulations (A), generous welfare benefits and unemployment insurance (B), and high minimum wages (D). Lower employment taxes for employers (C), on the other hand, would typically encourage hiring rather than discourage it, making it the exception.

High Unemployment Rates in Europe Are Believed to Be Due