Tristan Is a Freshman in High School and Is Looking

question 49

Multiple Choice

Tristan is a freshman in high school and is looking for a way to save money for college.What strategy would be best for him to use?

• A) 529 plan
• B) CD
• C) IRA
• D) 401(k)

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Definitions:

Wage Rate

The fixed amount of compensation or payment a worker receives from an employer in exchange for labor, typically measured per hour or piece of work done.

Diminishing Marginal Product

The decrease in the output of an additional unit of input when all other inputs are held constant beyond a certain point.

Marginal Product

The additional output gained from employing one more unit of a certain input, keeping all other inputs constant.

Labor Productivity

The measure of economic performance calculated by dividing the output by the number of labor hours used to produce it.