The high-school dropout rate usually declines in an economic recession because
A) a decline in job opportunities lowers the opportunity cost of remaining in high school.
B) high schools begin to offer more practical and relevant courses.
C) laws are passed to prevent teenagers from entering the labor market.
D) recessions increase the demand for education.
E) tuition and book prices usually fall in a recession.
A
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Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip's profit-maximizing output is
A) less than one ton. B) between two and three tons. C) between three and four tons. D) between one and two tons.
Which of the following explains why the original Phillips curve relation disappeared or, as some economists have remarked, "broke down" in the 1970s?
A) Individuals assumed the expected price level for the current year would be equal to the actual price level from the previous year. B) Individuals assumed that expected inflation would be zero C) Individuals changed the way they formed expectations of inflation. D) Monetary policy became contractionary. E) More labor contracts became indexed to changes in inflation.