Explanations for the High Saving Rate in China Consistent with the Life-Cycle

question 127

Multiple Choice

Explanations for the high saving rate in China consistent with the life-cycle reason for saving include:

• A)China's social safety net provides most people little in the way of retirement income.
• B)lifetime employment.
• C)the desire to leave resources to children who provide support and attention to parents in their old age.
• D)low unemployment rates in Japan.

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Definitions:

Resale Price Maintenance

Resale price maintenance is a practice in which manufacturers dictate the minimum prices retailers may charge for their products to keep prices at a certain level.

Economic Purposes

The rationale or objectives behind individual or collective economic activities, usually aimed at satisfying needs, accumulating wealth, or improving standards of living.

Prisoners' Dilemma

A scenario in game theory where individuals making rational choices may end up in a worse state due to an inability to cooperate.

Penalty

A punishment imposed for violating a law, rule, or contract.