The United States funds its unemployment compensation system by taxing

A. older, larger firms at a higher rate than younger, smaller firms.
B. firms more when they have a history of causing more layoffs, up to a point.
C. all firms at the same rate.
D. firms more when they have greater profits so that they can afford the additional taxes.
E. nonunion firms more than union firms because union firms pay higher wages on average.


Answer: B

Economics

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