Sarah and Diane Are Both Billing Clerks for the Local

question 199

Multiple Choice

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) Economic theory sheds no light on this question
• B) Both will have the same saving rate
• C) Diane
• D) Sarah

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Definitions:

Categories

Distinct groups or classes into which objects, concepts, or entities with common characteristics or features are divided and organized.

Identity Vs. Confusion

A developmental stage proposed by Erikson where adolescents seek to understand and establish their personal identity and direction.

Generativity Vs. Stagnation

A stage of adult development focusing on creating or nurturing things that will outlast an individual, versus a lack of psychological growth.

Isolation Vs. Intimacy

A concept describing the developmental challenge of establishing close relationships versus the risk of feeling isolated from social connections.