In a Recession, Needs-Tested Spending_{--------------------}and Induced Taxes_{--------------------}

question 74

Multiple Choice

In a recession, needs-tested spending_{--------------------}and induced taxes_{--------------------}

• A)increases; decrease
• B)decreases; increase
• C)increase; do not change
• D)increases; increase
• E)decreases; decrease

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen over others.

Double Feature

The showing of two films for the price of one in a movie theater, traditionally a practice in the mid-20th century.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs, representing the trade-off between different choices in the allocation of resources.

Recession

A significant decline in economic activity across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production, and wholesale-retail sales.