If borrowing is precluded, then beginning at age 18, the individual will consume

Consider an individual who enters adulthood and the labor force at age 18, expects to work 5 years at a real income of $10,000 per year, anticipates earning a real income of $40,000 per year from age 23 to 63, expects to retire with a $10,000 annual pension, and live until age 78. Suppose the interest rate is zero, and the individual seeks perfectly smooth consumption across his adult lifetime.

a) $10,000 each year until age 23, then about $32,000 per year afterwards
b) $10,000 every year
c) all of his income as he receives it each year
d) $10,000 per year until age 23, then $25,000 per year afterwards
e) $25,000 every year


a) $10,000 each year until age 23, then about $32,000 per year afterwards

Economics

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In the United States during the 1930s

A) government spending decreased and taxes increased, resulting in a fiscal contraction. B) government spending and taxes both decreased, resulting in a net fiscal contraction. C) government spending increased and taxes decreased, resulting in a fiscal expansion. D) government spending and taxes both increased, resulting in zero net fiscal expansion.

Economics

The unregulated, single-price monopolist illustrated in the figure above will set a price of

A) $2.00 per unit. B) $6.00 per unit. C) $8.00 per unit. D) $10.00 per unit.

Economics

An exogenous variable is typically ________

A) calculated by the model B) only used to conduct policy analysis C) explained inside the model D) disregarded in economic models E) none of the above

Economics

Hannah runs a manicuring shop. Currently, her shop provides 50 manicures per day, and the shop's daily total cost (TC) is $600. If Hannah decides to provide 25 more manicures per day, the total cost will rise by $75 per day. If Hannah does decide to increase production by this much, what will the shop's daily average total cost (ATC) be?

a. $12.00 b. $3.00 c. $8.00 d. $9.00 e. $13.50

Economics