Which types of industries are hit hardest by a recession? Explain.
What will be an ideal response?
Industries specializing in consumer durable goods production and capital goods production are hardest hit. When economic activity slows, people postpone purchases of durable goods which worsens the downturn. Likewise, businesses postpone the purchase of new equipment and plant expansion if they expect a downturn. These slowdowns in business spending cause further deterioration in economic activity.
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Which point shows where the United States economy would have a 100 percent unemployment rate?
A. Point B
B. Point C
C. Point D
D. Point E
In general, the __________ the welfare payment, the __________ the incentive to find work.
a. higher, high
b. lower, lower
c. lower, higher
Using the concentration ratio to measure the degree of competition
A. may overstate the degree of competition because it ignores imported goods. B. may overstate the degree of competition because inter-industry competition is ignored. C. may understate the degree of competition because it ignores imported goods. D. may understate the degree of competition because market share changes annually.
American workers in Iraq earn hazard pay. This is an example of a compensating differential.
Answer the following statement true (T) or false (F)