A business cycle is the period of time in which:
a. a business is established and ceases operations.
b. there are four phases: peak, recession, trough and expansion.
c. the price level varies with real GDP.
d. expansion and contraction of economic activity are equal.
e. none of these are true.
b
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The underground economy — the informal sector — can be a significant drag on the economies of developing countries. Why are firms in the informal sector often less efficient than firms in the formal sector?
What will be an ideal response?
The increased willingness of women to enter the workforce has most likely lead to what outcome in the labor market?
a. an increase in labor demand and higher real wages. b. an increase in labor supply and higher real wages. c. an increase in labor supply and high real wages. d. a decrease in labor demand and lower real wages. e. none of the above.