Long-Term Unemployment Rates Are Higher in Most Western European Countries

question 32

Multiple Choice

Long-term unemployment rates are higher in most Western European countries than in the United States because

• A) unemployment rates are calculated differently in Western Europe.
• B) nonmarket forces keep wages in Western Europe above the equilibrium level.
• C) technological change has accelerated more quickly in Western Europe.
• D) most Western European governments hire workers to perform jobs that are not in demand.

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Definitions:

Workers Hired

The number of employees that businesses employ or bring into their workforce.

Marginal Expenditure Curve

A graph showing the additional cost incurred from purchasing an additional unit of a good or service.

Market Supply Curve

The market supply curve graphically represents the relationship between the total quantity of a good that producers are willing to supply and the price of the good.

Market Wage Rate

The prevailing pay rate for work of a similar nature in a specific industry or geographic area.