Which of the following is an example of the life-cycle motive for saving?
A. Pat puts $400 per month in his 401(k) retirement account.
B. Chris keeps $15,000 in a money market account to pay expenses in case he loses his job.
C. Jordan sets aside $200 per month in case she has to pay for a new roof for her house.
D. Gerry and Terry put $2,000,000 in a trust fund that will go to their children when they die.
Answer: A
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Assume a perfectly competitive firm is producing a level of output at which MR < MC. What should the firm do to maximize its profits?
A) The firm should do nothing — it wants to maximize the difference between MR and MC in order to maximize its profits. B) The firm should decrease output. C) The firm should increase price. D) The firm should increase output.
At the current level of output, long-run marginal cost is $50 and long-run average cost is $75. This implies that:
A) there are neither economies nor diseconomies of scale. B) there are economies of scale. C) there are diseconomies of scale. D) the cost-output elasticity is greater than one.
Answer the following statement(s) true (T) or false (F)
1. Standard setting under the Safe Drinking Water Act Amendments of 1996 ignores benefit-cost analysis. 2. The EPA under the Obama administration devised a Drinking Water Strategy with goals that include addressing contaminants as groups instead of one at a time. 3. Under the law, priority contaminants are those that are expected to have an adverse effect on the ecology. 4. Under U.S. law, National Primary Drinking Water Regulations (NPDWRs) have been announced for hundreds of chemicals, microorganisms, and radionuclides. 5. Each National Primary Drinking Water Regulation (NPDWR) includes a Maximum Contaminant Level Goal (MCLG), a Maximum Contaminant Level (MCL), and Best Available Technology (BAT).
Which philosopher claimed that the government should aim to maximize the well-being of the worst-off person in society?