Sydney Saved $10,000 During Her First Year of Work After

question 90

Multiple Choice

Sydney saved $10,000 during her first year of work after college and plans to invest it for her retirement in 40 years. How much will she have available for retirement if she can make 8% on her investment?

• A)$596,250
• B)$453,000
• C)$345,100
• D)$217,250

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Definitions:

Fully Employed

A situation in which all available labor resources are being used in the most economically efficient way.

Production Possibility Frontier

A curve depicting all maximum output possibilities for two or more goods, given a set of inputs and technology, assuming efficient use of resources.

Decreasing Opportunity Costs

A situation where the cost of forgoing the next best alternative decreases as more units of a product are produced.