Professor Smith completed a study that showed that 60 percent of all the students who graduated from her college purchased new cars. What might explain this?
These students were likely to have accepted jobs at higher wages than the jobs they had as undergraduates. Since employment at a specific salary will allow you to take out a loan, these students probably borrowed the money expecting to pay it back, with interest, from their future income. These students are demonstrating a positive rate of time preference.
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Does correlation always imply causation? Why or why not? Explain with the help of real-life examples
What will be an ideal response?
Refer to Table 9-15. Looking at the table above, real average hourly earnings in 2014 were
A) $9. B) $9.52. C) $10. D) $12.63.
The goal of the business firm is maximization of ____, and the goal of the consumer is maximization of ____
a. total sales; income b. total profit; utility c. total output; utility d. total sales; utility
If an investor had a $25,000 long-term capital gain on a $100,000 investment from 1984 to 2010, her real rate of return was most likely
a. equal to the expected rate of inflation. b. equal to the nominal rate of inflation. c. zero. d. negative.