Author Question: If two households have the same disposable income in the current year, the household with the A) ... (Read 106 times)

tatyanajohnson · **on:** Jun 29, 2018

If two households have the same disposable income in the current year, the household with the

A) higher expected future income will consume a larger portion of its current income today.
B) lower expected future income will consume more today while it has the money.
C) lower expected future income will spend a larger portion of its current income on consumption today because it will increase its saving in the future.
D) none of the above

Question 2

In the above figure, at a wage rate of 20 per hour

A) there is a shortage of labor.
B) there is a surplus of labor.
C) the labor supply curve will shift rightward.
D) the labor demand curve will shift rightward.