Economists call pensions “defined benefits” plans, because
a. pension distributions rise with the rise in the CPI
b. pensions have traditionally been set as a fixed nominal dollar amount per year at retirement
c. pensions are always adjusted yearly for inflation
d. pensions are similar to borrowers who benefit from rising inflation
Ans: b. pensions have traditionally been set as a fixed nominal dollar amount per year at retirement
Explanation: Retires receiving a private company pension,receive a large share of their income in a form that does not increase over time,so economists call pensions defined benefit plans
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Refer to the above figure. A unit tax has been placed on the good. The producer pays what amount of the tax?
A) none of the tax B) P2 - P0 C) P2 - P1 D) P1 - P0
Answer the following statements true (T) or false (F)
1. The aggregate demand curve is the sum of individual demand curves in the economy. 2. Aggregate demand curves tend to be very flat. 3. Higher prices reduce the purchasing power of financial assets owned by households. 4. Net exports are excluded in the calculation of the national income. 5. As disposable income increases, the total amount of planned consumption increases.
The height of the demand curve at any quantity indicates
a. total expenditure on the good or service b. total revenue to the seller of the good or service c. whether the price is fair or not d. how much that particular unit is worth to the person who buys it e. how much the person who buys that unit actually pays for it
In the indifference curve-budget line model of labor supply, labor consists of
a. all productive activities outside of the marketplace. b. working in the marketplace for the going wage. c. engaging in productive activities, whether in the marketplace or not. d. working in the marketplace for the going wage and entrepreneurial activities.