Which of the following is an example of the bequest motive for saving?
A. Pat puts $400 per month in his 401(k) retirement account.
B. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
D. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.
Answer: B
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The breakdown of the Bretton Woods system occurred because
a. the world economy was basically unhealthy b. the collapse of world gold production undermined the operation of the system c. the dollar was undervalued d. the dollar was overvalued e. the ten richest countries in the world refused to cooperate any longer
Which of the following statements is NOT true regarding DeBeers' rise to monopoly power in the diamond market?
a. DeBeers produces about 40 percent of the world's raw diamonds and controls another 30 percent. b. DeBeers achieved dominance in this market by gaining control of South Africa's Kimberley "pipe," the world's largest source in the late nineteenth century. c. DeBeers carefully limited the amount of diamonds it released into the market. d. DeBeers did not worry about diamonds being discovered elsewhere because it already had full control of the industry in South Africa.
Answer the following statements true (T) or false (F)
1. The purpose of using the four-firm concentration ratio is to calculate how much market share would change in the case of a merger between two of the firms. 2. A minimum price contract is illegal because it would restrict competition. 3. One regulatory option for dealing with natural monopolies is to leave them alone. 4. The purpose of the Dodd-Frank Act was to address numerous accounting scandals involving prominent corporations such as Enron, Tyco International, and WorldCom that occurred as a result of deregulation. 5. If firms were required to pay the social costs of pollution, they would create less pollution but produce less of the product and charge a higher price.
Eric was laid off two months ago. He has not searched for other work because he is expecting to be recalled to work. The Bureau of Labor Statistics counts Eric as
a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. not in the labor force.