The typical economic life cycle illustrates how people tend to
a. borrow more when they are younger and save more when they are middle-aged.
b. earn their peak incomes immediately prior to the typical retirement age of 65.
c. adjust their consumption based on changes in their transitory income.
d. All of the above are correct.
a
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Place point X on the graph to indicate full employment, point Y to indicate economic growth and point Z to indicate a bad depression.
Situation 35-2 ? Dan and Ann live in the same community and both can participate in two activities, producing and stealing. Refer to Situation 35-2. Ann spends 8 hours of each day producing and 1 hour of each day stealing. It is probably the case for her that
A. at some point the MB/MC ratio for producing fell below the MB/MC ratio for stealing. B. her MB/MC ratio for producing was always greater than her MB/MC ratio for stealing. C. her MB/MC ratio for producing never changed, no matter how much or how little she produced. D. her MB/MC ratio for stealing never changed, no matter how much or how little she stole. E. There is not enough information to answer the question.
The riskiness of an asset that is unique to the particular asset is
A) systematic risk. B) portfolio risk. C) investment risk. D) nonsystematic risk.
Some oil refineries were damaged by Hurricane Ike of 2008, leading to
A) a decrease in supply of gasoline. B) a decrease in quantity supplied of gasoline. C) a decrease in demand for gasoline. D) a decrease in quantity demanded for gasoline.