John Has $100,000 in Annual Income but Does Not Own

question 120

Multiple Choice

John has $100,000 in annual income but does not own his house or a car.Bob has $100,000 in annual income and owns two houses and four cars.Which theorist would predict that John spends a different proportion of his current income than Bob?

• A) Milton Friedman
• B) John Maynard Keynes
• C) Irving Fisher
• D) David Ricardo

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Definitions:

Risky Vocations

Occupations that involve a high degree of danger or risk to the individual performing them.

Sensation Seekers

Individuals who have a heightened preference for experiences and activities that are stimulating or novel.

Risky

Involving or associated with the possibility of negative outcomes or danger.

Opponent-process Theory

A psychological and neurological model that explains how the perception of colors is achieved by the brain through the activation of opposite (or opponent) processes.