Which of the Following Statements Most Closely Describes the Variation

question 80

Multiple Choice

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.

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Definitions:

Employer's Right

The set of legal entitlements and powers that an employer has over its workforce and in the conduct of its business.

Wagner Act

A foundational piece of US labor law that established the rights of employees to unionize, engage in collective bargaining, and take collective action, including strikes.

Collective Bargaining

The process of negotiation between employers and a group of employees aimed at agreements to regulate working conditions.

Strike

A collective action taken by employees refusing to work, aiming to gain concessions from their employer, typically related to wages, benefits, or working conditions.