Which statement about the Life Cycle Hypothesis is NOT true?
A. It describes the choices of consumers who live for a long time.
B. It separates consumers' earnings into two stages.
C. It assumes that people prefer instability.
D. It assumes that people prefer a higher standard of living to a lower standard of living.
C. It assumes that people prefer instability.
You might also like to view...
The world distribution of income has become more equal since 1970 because
A) the distribution of income within most countries has become more equal. B) foreign aid programs from rich nations have increased in size and especially in effectiveness. C) average incomes in poor nations, such as China, have risen faster than average incomes in rich nations, such as the United States. D) None of the above answers are correct.
If the government wished to shift aggregate demand to the right, it might:
A. increase government spending. B. increase income taxes. C. pressure the Fed to decrease the money supply. D. Any of these things might cause aggregate demand to shift to the right.
Suppose the price level increases by 5 percent and the nominal wages of workers increase by 3 percent during a particular year. This implies that the real wage has _____
Fill in the blank(s) with the appropriate word(s).
A firm with two plants, A and B, has the following estimated demand and marginal cost functions:Qd = 120 - 10PMCA = 4 + (1 / 5)QAMCB = 6 + (1 / 10)QBIn order to maximize profit, how many units of output should the firm produce?
A. 50 B. 15 C. 10 D. 45 E. 25