Which of the following is an example of the bequest motive for saving?
A. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
B. Pat puts $400 per month in his 401(k) retirement account.
C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.
Answer: A
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A significant amount of positive consumer surplus is the reason why sometimes a shopper regrets having bought a particular item
Indicate whether the statement is true or false.
Suppose two variables are directly related. If one variable rises, then the other variable:
a. also rises. b. falls. c. remains unchanged. d. reacts unpredictably.
An improvement in consumer confidence will cause:
A. A movement down the aggregate demand curve. B. The aggregate supply curve to shift to the right. C. The aggregate demand curve to shift to the right. D. The aggregate demand curve to shift to the left.
Recall the Application about the decrease in price of illegal drugs in the United States to answer the following question(s).Recall the Application. If it is not known whether the decrease in price of illegal drugs is primarily due to a change in supply, a change in demand, or equal changes in both, the equilibrium quantity of drugs:
A. will increase. B. will decrease. C. will not change. D. may or may not change.