Identify at least three possible sources for a risk an individual may face in planning for retirement.
What will be an ideal response?
In planning for retirement an individual faces at least the following uncertainties: Life span, there is uncertainty regarding how long an individual's life will be. Unexpected inflation, no one knows what the inflation rate will be in the future. This makes earning a targeted real return difficult. Health problems or other unforeseen contingencies can use up funds that were being set aside for retirement.
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Due to externalities generated by home landscaping, its price
A) is above the optimal level, and quantity that is below the optimal level. B) is below the optimal level, and quantity that is above the optimal level. C) and quantity traded are both above the optimal level. D) and quantity traded are both below the optimal level. E) must fall in order for the market to reach equilibrium.
Tax incidence refers to
A) determining who sends the taxes into the government. B) the tendency of some people to avoid paying taxes at all. C) the distribution of tax burdens among groups, or who really pays a tax. D) determining the marginal tax rate applied to any increase in income.
The rational expectations hypothesis states that
A. people incorporate past and present economic information into decision making. B. prices do not adjust in a downward direction. C. consumers do not understand the effects of monetary and fiscal policy. D. individuals always behave irrationally.
The Solow model is distinct from the Romer model in that an increase in population tends to cause ________
A) a permanent decrease in the standard of living in the Romer model B) an increase in spillover effects in the Solow model, but not in the Romer model C) a permanent increase in the standard of living in the Solow model D) a permanent increase in the standard of living in the Romer model