Sarah and Diane are both billing clerks for the local trucking company earning $17,000 per year. Sarah is attending college, plans to graduate in one year and earn $55,000 as an economist
Diane is not in college or undergoing any specialized training and will have the same job next year. According to economic theory, which of the two individuals would tend to have a higher current savings rate? A) Diane
B) Sarah
C) Both will have the same saving rate.
D) Economic theory sheds no light on this question.
A
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The Washington Consensus refers to
a. agreements between Republicans and Democrats b. guidelines for limiting government intervention, supported by the World Bank andInternational Monetary Fund c. the agreement as to where to locate the U.S. government d. guidelines for providing U.S. aid to developing-country governments e. guidelines for providing federal aid to state and local governments
If the MRP per dollar is greater for labor than that for tools, a producer should spend more money on labor than originally planned and less on tools. How long can he continue this switch in spending? Why?
What will be an ideal response?