Compare and contrast the recent recession with the Great Depression.
What will be an ideal response?
Answers will vary, but the student should indicate that the economy was in far worse shape during the 1930's than during the recent downturn. The student could also point out the many government programs in existence today that weren’t around in the 1930's.
You might also like to view...
Use the following graph to answer the next question.
If the government regulated the pure monopoly and made it set a normal profit price, what price and quantity of output levels would we observe in the short run?
A. P1 and Q1 B. P2 and Q3 C. P3 and Q2 D. P4 and Q1
An increase in both the equilibrium price and quantity can be the result of
A) a decrease in demand. B) an increase in supply. C) a decrease in supply. D) an increase in demand. E) None of the above answers is correct.
To use an analogy that helps explain the ABCs of economic development: To build a skyscraper, you must first build the foundation. In order for an economy to create economic development, it must first develop an infrastructure. The infrastructure investment refers to
a. networks of factories b. a high birth rate c. markets d. roads, schools, telecommunications systems, hospitals e. an access to foreign investment
The good news for unions and their members is that union workers earn about 20% more than nonunion workers, even after adjusting for factors such as years of work experience and education level. What is the bad news?
a. In the 1930s, union members earned 37% more than nonunion members, after adjusting for inflation. b. Most unionized companies were driven out of business, leaving only about 5% of U.S. workers in unions. c. The percentage of U.S. workers who belong to labor unions has declined steadily for 50 years. d. As union membership rises, the wage gap will shrink.