What are some reasons why the unemployment rate is typically lower in the United States as compared to Canada and some Western European countries?
What will be an ideal response?
Workers in Western Europe and Canada are eligible for unemployment insurance benefits for about twice as long as in the United States. In addition, some of the social insurance programs in these countries are more generous as compared to the United States. This makes the opportunity cost of job search lower in Canada and Western Europe, so unemployed workers in those regions will search longer for jobs. This increase in the duration of unemployment raises the unemployment rate in these countries, relative to the United States.
You might also like to view...
Holding a group of assets reduces risk relative to holding a single asset as long as the assets
A) are dependent on each other. B) are positively correlated. C) are uncorrelated. D) do not have precisely the same pattern of returns.
Compared to dollarization, a currency board
A) has a flexible exchange rate. B) has a separate currency. C) conducts independent monetary policy. D) is the same institution.
When an airline reduces its fares, other airlines typically match the action. But when an airline increases its fare, other airlines do not follow suit. Which oligopoly model cartel, price leadership, or kinked demand best fits the airline industry as described? Justify your choice and explain why the other models are less appropriate.
What will be an ideal response?
A futures contract is an example of:
A. a contract that is traded but is not a financial instrument. B. an instrument used solely by financial institutions. C. a derivative instrument. D. a high-risk security that will only have value if certain events occur.