The life cycle model explains saving primarily as
a) a desire to leave a bequest to one’s heirs
b) a response to uncertainty regarding longevity
c) a response to high real interest rates
d) a response to employment and demographic changes over one’s lifetime
e) the result of under-estimating real wealth
d) a response to employment and demographic changes over one’s lifetime
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In the circular flow model, which of the following is on the selling side in the goods market?
A) federal, state, and local governments B) only households C) exporters D) only firms E) both firms and households
Paying a person a lower wage or excluding a person from an occupation on the basis of an irrelevant characteristic such as race or gender
A) violates federal comparable worth laws. B) can be explained by negative feedback loops. C) creates differences in wages that economists call "compensating differentials." D) is economic discrimination.
Virtual currency unit 2 (VCU2) is different from VCU1 because:
a. VCU1 can only be purchased with real-word currencies. VCU2 can be purchased with real-world currencies and also earned in the virtual world. b. VCU1 cannot be converted into legal tender; VCU2 can be converted into legal tender. c. VCU1 can only be earned in the virtual world; VCU2 can be earned in the virtual world or purchased with legal tender. d. In terms of spending potential, there is no difference; both VCU1 and VCU2 can be spent in the real world.
In an open? economy, if the federal government has a budget? deficit, the trade balance is more likely to be
A. a surplus. B. either a deficit or surplus; it depends on macroeconomic conditions. C. a deficit. D.balanced.