Why doesn't the age-earning cycle continuously increase until retirement age?
What will be an ideal response?
The typical worker sees a decline in earnings as he or she approaches retirement because people tend to reduce their hours worked, and have lower stamina and strength. The detrimental effects of aging tend to overcome the increases in productivity due to experience and training.
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Demand-pull inflation starts with a shift of the
A) potential GDP line leftward. B) AD curve leftward. C) AS curve leftward. D) AS curve rightward. E) AD curve rightward.
Gains from trade
A) result in being able to consume beyond the trading individuals' production possibilities frontiers. B) occur when one party to the trade has an absolute advantage in both goods. C) occur when people do not specialize. D) occur when opportunity costs are equal. E) always benefit one party but not the other party of any trade.
Based on the table above which shows Chip's costs, if rice sells for $600 a ton, Chip
A) makes an economic profit and should stay open in the short run. B) makes an economic profit, but should shut down in the short run. C) incurs an economic loss, but should stay open in the short run. D) incurs an economic loss and should shut down in the short run.
The source of hyperinflations is primarily
a. lower output growth. b. continuing declines in velocity. c. increases in money-supply growth. d. continuing increases in money demand.