In the absence of borrowing constraints, then beginning at age 18, the individual should consume
Consider an individual who enters adulthood and the labor force at age 18, expects to work 5 years at a real income of $10,000 per year, anticipates earning a real income of $40,000 per year from age 23 to 63, expects to retire with a $10,000 annual pension, and live until age 78. Suppose the interest rate is zero, and the individual seeks perfectly smooth consumption across his adult lifetime.
a) all of his income as he receives it each year
b) $10,000 every year
c) $20,000 every year
d) $30,000 every year
e) $25,000 every year
d) $30,000 every year
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Interlace, Inc produces and a unique soda. The company cannot price discriminate. The figure above shows Interlace's demand curve, marginal revenue curve, and marginal cost curve. When Interlace maximizes its profit, the deadweight loss is
A) zero. B) $15,000. C) $21,000. D) $3,000.
Suppose a U.S. resident buys a car from a car maker in Japan. This transaction will:
a. have a negative effect on Japan's balance of trade in merchandise. b. have a negative effect on the U.S. balance of trade in merchandise. c. have a positive effect on the U.S. balance of trade in merchandise. d. bring money into the United States. e. have no effect on Japan's balance of trade in merchandise.
Which of the following is true regarding the per person income of the world during the past 1000 years
a. The world's income per person has approximately doubled during the past 1000 years and most of that growth has occurred since 1900. b. The world's income per person changed very little during the 800 years prior to 1813, but it has increased by nearly tenfold during the past 200 years. c. The world's income per person has grown steadily during the past 1000 years. d. The world's per person income grew at an annual rate of more than 2 percent during 1000-1813, but the annual growth rate has declined as the population increased during the past 200 years.
Refer to the information provided in Figure 31.1 below to answer the question(s) that follow.
Figure 31.1Refer to Figure 31.1. Which of the following causes the ppf to shift from ppf2 to ppf3?
A. an increase in the population B. a decrease in the labor force C. technological progress D. a decrease in capital stock