Unemployment insurance is a ________ program that is funded by the ________.

A) noncontributory; federal and state governments
B) noncontributory; state governments only
C) contributory; federal and state governments
D) contributory; state governments only

Unemployment insurance is a contributory program, meaning that it is funded by both the federal and state governments through payroll taxes paid by employers. The taxes are based on a percentage of the wages paid to employees, and the funds are used to provide financial assistance to workers who lose their jobs through no fault of their own.