If You Were Going to Give Advice to a Friend

question 19

Essay

If you were going to give advice to a friend about what lifestyle or habits to follow in order to maximize the likelihood of maintaining intellectual skill well into old age, what specific items would you list? For which of these pieces of advice do you have the best support?

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Definitions:

Substitution Effect

This refers to the economic theory that as prices rise or fall, consumers will replace more expensive items with less costly alternatives.

Income Effect

Refers to the change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Tax Rate

The rate at which taxes are applied to an individual or a corporation’s income.

Consumption Tax

A tax on the purchase of goods and services, levied at the point of sale.