Some People Drop Out of the Labor Force During Times

question 33

Multiple Choice

Some people drop out of the labor force during times of recession:

• A) to go back to college, because the opportunity cost is lower during a recession.
• B) because they age out of the workforce.
• C) because the cost of living is lower.
• D) All of these are true.

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Definitions:

Increasing Returns

A concept in economics where an increase in the scale of production leads to a greater than proportional increase in output.

Copper Mines

Sites or locations where copper ore is extracted from the earth for commercial value and industrial use.

Global Recession

A period of worldwide economic decline characterized by reduced industrial production, trade, and consumer spending.

Constant Returns

A situation in production where increasing all inputs by a certain proportion results in an increase in outputs by the same proportion.