The idea of the ________ is that people make lifetime consumption plans.
A. law of demand
B. life-cycle theory of consumption
C. classical theory of investment
D. invisible hand
Answer: B
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Which of the following is ALWAYS true for a perfectly competitive firm?
A) P = MR B) P = ATC C) MR = ATC D) P = AVC
In economics, ________ are limited but ________ are unlimited
A) wants; resources B) resources; wants C) money; ideas D) ideas; money
The benefits of economic growth are ________, while the costs of economic growth are ________.
A. increased output per person; too small for concern B. more current consumption; less future consumption C. increased output per person; less future consumption D. increased output per person; the consumption sacrificed in exchange for capital formation
In the late 1990s, Thailand, Malaysia, and Indonesia all experienced sharp declines in the value of their currencies; this resulted in economic instability and crisis. The collapse in the values of their currencies undermined their development by:
A. decreasing political instability. B. decreasing population growth. C. increasing corruption. D. reducing investment.