What is the age-earnings cycle? What is the typical age-earnings profile for a U.S. resident?
What will be an ideal response?
The age-earnings cycle is the regular earnings profile of an individual throughout his or her lifetime. It usually starts with a low income, builds gradually to a peak at around age 50, and then gradually curves down until retirement age, at which time it approaches zero.
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Economic policy of the government is often based on
A) microeconomic models. B) educated guessing. C) intuitive reasoning. D) hints.
Which of the following statements is true of a monopolist?
a. The firm charges the highest possible price. b. The firm always earns a profit. c. The firm might earn a profit in the long run. d. The firm generates a larger consumer surplus than a perfectly competitive firm. e. The firm is more production efficient than a perfectly competitive firm.
Investing in additional education and _________ are more likely to result in accumulating sufficient personal wealth to be able to retire relatively comfortably, but these require effort, patience, and sacrifice.
a. accurately predicting the market b. investing in gold and other precious metals c. investing in random walk bonds d. starting to save early in life