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
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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.
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.
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
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