Suppose that Angelo and Sonia each win $500 in a charity raffle. Angelo spends his winnings on a new ipad. Sonia saves her winnings. Which of the following is correct?
a. Both Angelo's and Sonia's behavior suggest that they base their purchasing decisions on transitory income.
b. Angelo's behavior suggests that he bases his purchasing decisions on transitory income rather than permanent income. Sonia's behavior suggest that she bases her purchasing decisions on permanent income rather than transitory income.
c. Angelo's behavior suggests that he bases his purchasing decisions on permanent income rather than transitory income. Sonia's behavior suggests that she bases her purchasing decisions on transitory income rather than permanent income.
d. Both Angelo's and Sonia's behavior suggest that they base their purchasing decisions on permanent income.
b
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The demand curve for labor is negatively sloped only because the firm must lower its price if it wishes to sell more output
Indicate whether the statement is true or false
Which of the following is correct?
a. Incomes tend to be high for young workers. b. Incomes tend to rise sharply at retirement. c. Incomes tend to peak at around age 50. d. Current income is more equally distributed than permanent income.