In the life-cycle hypothesis, if a person enters working life with an inherited stock of assets, this
A) raises his consumption during the working years.
B) raises his consumption during the retirement years.
C) raises his consumption in every year.
D) lowers his consumption during the retirement years.
E) lowers his consumption during the working years.
C
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With increased specialization in the economy, principal-agent problems become
a. more numerous b. less numerous c. more severe, but there are fewer of them d. less severe, but there are more of them e. easier to solve
In the real world, most economic systems are:
a. market economies. b. command economies c. mixed economies. d. traditional economies.
Which of the following events would cause both the equilibrium price and equilibrium quantity of number two grade potatoes to increase if number two grade potatoes are an inferior good?
a. an increase in consumer income b. a decrease in consumer income c. greater government restrictions on agricultural chemicals d. fewer government restrictions on agricultural chemicals
U.S. GDP increased from $12.5 trillion in 2005 to $14 trillion in 2009. This means that:
A. Both of these must be true. B. the prices of all goods and services were higher in 2009 than in 2005. C. people in the U.S. produced more goods and services in 2009 than in 2005. D. Either of these could be true.