An expectation that encourages people to behave in a certain way

a. free enterprise
b. traditional economy
c. incentive
d. safety net
e. socialism

Ans: c. incentive

Economics

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An IRA (Individual Retirement Account) allows taxpayers to invest money out of their personal income before taxes

Financial advisors will often tell their clients that they will realize more net pay (income after taxes) if they invest with an IRA versus saving their money in a simple savings account at a bank. Explain how this is so.

Economics

In cost-benefit analysis, a low discount rate tends to favor projects with relatively ____ lives

a. short b. long

Economics