The fact that 80% of the assets accumulated during a lifetime are bequeathed to heirs in the United States suggests that
A) the appropriate time horizon for consumption theory is the lifetime of the earner.
B) the appropriate time horizon for consumption theory is intergenerational.
C) the Barro-Ricardo equivalence theorem is correct.
D) it is true that higher taxes increase savings.
B
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Which of the following was NOT a time period in which output in the U.S. sharply rose?
A. World War I B. the Roaring Twenties C. the early 1930s D. the 1960s E. the late 1990s
Discouraged workers are included in the calculation of the
i. unemployment rate. ii. labor force participation rate. iii. working-age population. A) i only B) i and ii C) ii only D) iii only E) ii and iii
Statistical studies in the United States have reached the conclusion that for most workers the response of labor supply to wage changes is
A. quite strong. B. not very strong. C. inverted. D. always zero.
In the Cournot model,
A. each firm takes the quantities produced by its rivals as given. B. one firm plays a leadership role and its rivals merely follow. C. prices are higher and quantities are slightly less than we would see if the firms colluded. D. each firm takes the prices charged by its rivals as given.