Which of the following explains the cause of the change in the unemployment rate at the end of a recession?
A) Firms are hesitant to rehire laid off workers as they continue to operate below capacity.
B) Discouraged workers leave the labor force, and this makes the unemployment rate rise.
C) Discouraged workers return to the labor force, and this makes the unemployment rate fall.
D) Firms rapidly hire new workers at the first sign of an increase in demand for their goods.
A
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Refer to Scenario 12.2. Explain why the situation described in the scenario is neither a prisoner's dilemma nor a battle of the sexes
What will be an ideal response?
Double taxation refers to
A) individuals paying taxes on wage income and individuals paying taxes on dividends. B) corporations paying taxes on capital gains and individuals paying taxes on wage income. C) corporations paying taxes on profits and individuals paying taxes on dividends. D) corporations paying taxes on profits and individuals paying taxes on wage income.
Price controls can generate inequities
a. True b. False Indicate whether the statement is true or false
When economists refer to a firm's capital, they are describing the
a. markets for final goods and services. b. stock of equipment and buildings used in production. c. amount of bank financing used by the firm. d. amount of financing provided by the equity markets.