Miguel is a 20 year old college student who works part-time and earns an annual income of $12,000 . To smooth out his life cycle changes in income, Miguel can
a. save his earnings to use when he is middle-aged.
b. lend money to a friend to purchase a new car.
c. borrow money to pay for college, which he will later repay when his income rises.
d. attempt to pay for college from his current earnings.
c
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Microeconomics includes the study of the
A) aggregate effects on the national economy. B) nationwide unemployment rate. C) reasons why the government changes interest rates. D) recessions and inflation in the global economy. E) choices made by individuals and businesses.
Which statement about price elasticity of demand along a linear demand curve is true?
a. As the quantity demanded increases, so does the buyer's sensitivity to price. b. When price elasticity of demand is equal to 1, consumers are indifferent to subtle price changes. c. The ratio of current price to quantity demanded is a good estimate of the elasticity of demand. d. As the prices of goods increase, the elasticity of demand increases. e. When an individual buys 4 units of a good his/her elasticity of demand for each unit increases.
A situation in which two people each want some good or service that the other person is able to provide is called a double coincidence of wants
a. True b. False Indicate whether the statement is true or false
The slow growth of U.S. incomes during the 1970s and 1980s can best be explained by
a. unstable economic conditions in Eastern Europe. b. increased competition from abroad. c. a decline in the rate of increase in U.S. productivity. d. a strong U.S. dollar abroad, hurting U.S. exports.