Some people drop out of the labor force during times of recession:
A. because they cannot find work and give up trying.
B. to go back to college, because the opportunity cost is lower during a recession.
C. and decide to take early retirement.
D. All of these are true.
Answer: D
You might also like to view...
If a nation exports a product, then the price of that product in the nation
A. will rise above the domestic (no-trade) equilibrium price. B. may either rise or fall, depending on the product. C. will fall below the domestic (no-trade) equilibrium price. D. will remain the same as the domestic (no-trade) equilibrium price.
Which of the following participants in the working of a firm are referred to as residual claimants?
A) workers B) managers C) entrepreneurs D) all of the above
If a sandwich shop produces zero sandwiches, which of the following costs will it still incur?
A. Employee's wages B. Sandwich ingredients C. Rented storefront D. None of these costs will be incurred if they no longer make sandwiches.
Evidence from the Great Recession suggests that the crowding out effect:
A. was minimal at that time. B. had a very detrimental effect on private savings. C. can be quite large in times of recession, and is reinforced with recent research from 2008. D. may hold, although the evidence is somewhat contradictory.