Which of the following people—none of whom has any financial or housing wealth—is most likely to be spending all of their current income?
A) a low income person expecting continued low income throughout life
B) a low income person expecting a dramatic rise in income in the future
C) a high income person expecting continued high income throughout life
D) a high income person expecting a dramatic drop in income in the future
E) a high income person expecting to retire soon, and live for a long time afterward
B
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Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
It is important to place particular stress on the role of primary education in the development strategy because of
(a) LDC's comparative advantage from basic skills education. (b) the law of diminishing returns. (c) development emphasis on poverty alleviation. (d) all of the above.
Which of the following is true?
a. A stockholder owns part of the corporation. b. A stockholder has loaned money to the corporation. c. A stockholder is owed money by the corporation. d. A stockholder must be consulted on all major decisions.
When it is costly or impossible to prevent a person who hasn't paid for a particular good from using it, then that good is classified as being _____
a. excludable b. rival c. non-excludable d. non-rival