Answered: 1. Homemade Lasagna and the Pursuit for…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter2: Productions Possibilities, Opportunity Costs, And Economic Growth

Section: Chapter Questions

Problem 1SQ

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1. Homemade Lasagna and the Pursuit for Knowledge

Your sister, Jamila, a newly appointed human resource manager at a fast-growing assisted living facility, was sitting with you at the dinner table. While you were enjoying a homemade Lasagna and watching TV together, a news report stated that "According to government officials, we are now headed into a recession that could last up to 10 months. The decline in economic activities is expected to affect all major industries."

Your sister raised her eyebrows and showed an expression of confusion as she looked at you and stated, "Oh dear, what should I do now as an HR manager? My company is opening a large facility in a couple of months, and we need at least 60 people to run it. I oversee finding those people, but now I am afraid of doing so because it looks like the economy is in trouble. So, dear brother, help me understand a couple of things:"

First, what on earth is a “recession”, and how does it affect the economy?
Do things become cheaper or more expensive during a recession? And why?
How does this recession affect my search for those 60 workers? Would I be expected to pay them more than usual or less? Why?

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