How do income and wealth change over a person's lifetime? How does this affect the distribution of income at a point in time?
What will be an ideal response?
On the average, incomes start out low, increase as the household's workers gain experience and other human capital, peak when the household's workers reach retirement age, and then fall after retirement. On the average, wealth also starts out low, increases as income increases and workers save for retirement, peaks at the point of retirement, then falls after retirement. Because there are always people at all stages of life, the distribution of income at a point in time overstates the actual inequality. The discrepancy would be greater for countries with large percentages of young and retired workers.
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Describe the three types of unemployment?
What will be an ideal response?
In moving from a shortage toward the market equilibrium, which of the following is true?
a. Quantity supplied decreases. b. Quantity demanded increases. c. Price falls. d. Price rises.
During a bank run, depositors decide to hold more currency relative to deposits and banks decide to hold more excess reserves relative to deposits
a. Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply increase. b. Both the decision to hold relatively more currency and the decision to hold relatively more excess reserves would make the money supply decrease. c. The decision to hold relatively more currency would make the money supply increase. The decision to hold relatively more excess reserves would make the money supply decrease. d. The decision to hold relatively more currency would make the money supply increase. The decision to hold relatively more excess reserves would make the money supply decrease.
All of the possible combinations of two goods that lie on one indifference curve
A. Are affordable. B. Yield the same level of marginal utility. C. Yield the same level of utility. D. Give the consumer the highest possible utility.