Is Each of the Following Situations an Example of Savings

question 63

Essay

Is each of the following situations an example of savings, investment, or neither? In each case explain your choice.
(a) A savings and loan association lends money for the purchase of "junk" (not backed) bonds.
(b) John's income is $25,000 per year; $22,000 is spent on consumer goods and the remaining money is used purchase stock in the local electric company.
(c) Just before retirement a couple sells their shares of Pacific Bell stock and puts the proceeds in a bank savings account.
(d) The city of Los Angeles rebuilds highways after an earthquake.
(e) In order to improve the income earning potential of current welfare recipients, the federal government increases the size of income transfers.

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Definitions:

Main Effect

In statistics, the direct influence of an independent variable on a dependent variable in an experimental design.

Anxiety

A feeling of worry, nervousness, or unease about something with an uncertain outcome.

Motivation Levels

The intensity of one's drive or desire to undertake specific behaviors or pursue particular outcomes.

Factorial Design

An experimental setup that involves two or more factors with different levels to study their effects on the dependent variable.