Which of the following best explains why unemployment rates are higher in the European economies than in the United States?
A)More Europeans go to school full time and are therefore not able to participate in the labor market.
B)Unemployment benefits are more generous in Europe than in the United States.
C)Workers in Europe are less productive than workers in the United States.
D)European industries pay a lower wage rate than industries in the United States.

Question

Quizplus · Accepted Answer

Unemployment benefits are more generous in Europe than in the United States, which can lead to a higher rate of unemployment as individuals may choose to remain unemployed to continue receiving those benefits.

Which of the Following Best Explains Why Unemployment Rates Are