When the economy enters a recession, your employer is unlikely to reduce your wages because ________ during a recession
A) output and input prices generally fall
B) lower wages increase your incentive to find employment elsewhere.
C) output prices always fall
D) output prices generally fall and input prices generally rise
Answer: B
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The purchase of 500 shares of Honda stock by the California State Employees' Pension fund
A) is counted as consumption expenditure. B) is not counted as part of GDP. C) is counted as investment in the GDP accounts. D) is counted as part of export expenditure in the GDP accounts because Honda is a foreign firm. E) is counted as part of import expenditure in the GDP accounts because Honda is a foreign firm.
A removal or depletion tax on an open-access resource increases the marginal private cost of using the resource by
a. zero b. the amount of the tax c. the marginal product of the resource d. the average private cost of using the resource e. the average social cost of using the resource