People who attend college for four years in order to equip themselves to earn higher incomes in later life are
A) discounting the future at a higher rate than do people who don't attend college.
B) giving up future satisfaction for the sake of current satisfaction.
C) ignoring the fact that future income has less value than current income.
D) investing in human capital.
E) revealing a high rate of time preference.
D
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John is trying to decide how to divide his time between his job as a stocker in the local grocery store, which pays $7 per hour for as many hours as he chooses to work, and cleaning windows for the businesses downtown. He makes $2 for every window he cleans. John is indifferent between the two tasks, and the number of windows he can clean depends on how many hours he spends cleaning in a day, as shown in the table below:Hours PerDay CleaningWindowsTotal Numberof WindowsCleaned0017211314416517How many hours a day should John spend cleaning windows?
A. 1 B. 2 C. 3 D. 4
An individual will never buy complete insurance if:
a. he or she is risk averse. b. insurance premiums are unfair. c. he or she is a risk taker. d. insurance premiums are fair.
If the equilibrium price of an airline ticket is $400 and the government imposes a price floor of $500 on airline tickets, then fewer airline tickets will be sold than at the market equilibrium
a. True b. False Indicate whether the statement is true or false
Which of the following is a normative question?
A. Should the government require cars to be fuel efficient? B. Does legalized abortion lead to lower crime rates? C. Will moving a plant overseas reduce production costs? D. Will an increase in the minimum wage reduce poverty?