What is the age-earnings cycle? What is the typical age-earnings profile for a U.S. resident?
What will be an ideal response?
The age-earnings cycle is the regular earnings profile of an individual throughout his or her lifetime. It usually starts with a low income, builds gradually to a peak at around age 50, and then gradually curves down until retirement age, at which time it approaches zero.
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Your real wealth is measured as the
A) amount of assets you have in dollar terms. B) amount of money you have. C) amount of goods and services your wealth will buy. D) amount of goods you have divided by the price level.
What is meant by diminishing marginal benefits? Are you likely to experience diminishing marginal benefits for goods that you like a lot? Are there exceptions to the general rule of diminishing marginal benefits? (Hint: think about batteries that you
would use in a flashlight that requires two batteries.) Explain your answer.