Which of the Following Explains Why Many European Countries Have

question 156

Multiple Choice

Which of the following explains why many European countries have unemployment rates that are higher than in the United States?

• A)Technological change occurs at a faster rate in Europe,so structural unemployment is higher in Europe.
• B)European countries offer higher unemployment benefits than the United States.
• C)Firms in European countries offer employees higher wages and higher benefits than do firms in the United States.
• D)The minimum wage in Europe is lower than it is in the United States.

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Definitions:

Interest

The cost of borrowing money or the payment received for lending money, typically expressed as an annual percentage rate.

Discount on Bonds

The difference between the bond's face value and its selling price when the bond is sold for less than its face value.

Financing Activities

Financing activities are transactions between a company and its creditors or investors, including issuing equity, borrowing money, and repaying loans, reflected in the cash flows statement.

Cash Flow

The aggregate sum of funds moving in and out of a company, particularly influencing its liquidity.