Using the Rule of 70, How Many Years Would It

question 86

Multiple Choice

Using the rule of 70, how many years would it take for David's income to double if he was to experience a 4 percent increase in income each year?

• A) 22
• B) 35
• C) 28
• D) 17.5

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Definitions:

Human-Capital Theory

An economic framework that suggests the accumulation of education, training, and health can improve workers' productivity and thus the economic output of a nation.

Human-Capital Theory

The concept suggesting that investing in education and training improves the productivity and efficiency of individuals, making them more valuable to employers and increasing their potential income.

Signaling View

A perspective in economics that suggests an action taken by a party can reveal or signal information about that party to other parties, often seen in contexts such as education and employment markets.

Superstar

A superstar is a highly prominent or exceptionally talented person, especially in entertainment or sports, who commands a significant degree of public fascination and influence.