USE THE CASE STUDY TO ANSWER THE FOLLOWING QUESTIONS

One of the reasons that personal savings are so low is that individuals have gone on a consumption binge, even in the face of stagnate incomes. Normally, market forces would correct this binge in part by increasing the costs of consumable goods. But recent times have been different. There are groups out there (especially one-China) willing to trade consumable goods for America's seed stocks by financing federal budget deficits through the purchase of federal debt, thus enabling the funding of higher mortgages on consumer's homes. So, the consumption binge continues. It is, however, moderating as the dollar declines in value and home values decrease.

Number Seven: No Retirement Funds

A recentWall Street Journalarticle reported that most baby boomers under 65 have less than $150,000 saved for retirement; those under 50 have saved less than $50,000.[16]Such low savings are clearly not sufficient for a comfortable retirement and may force retirees back into a lifetime of work.

Many times, the funds that are invested in the stock market are invested more as a gamble in an effort to "catch up." Apparently, the relationship between savings and the time value of money is unclear to most employees. From early debt repayment to life cycle decisions, the burden is on individuals to fend for themselves. A long-term plan with adequate contributions is needed in order to prepare for retirement, particularly in light of the Social Security dilemma.One of the reasons that personal savings are so low is that individuals have gone on a consumption binge, even in the face of stagnate incomes. Normally, market forces would correct this binge in part by increasing the costs of consumable goods. But recent times have been different. There are groups out there (especially one-China) willing to trade consumable goods for America's seed stocks by financing federal budget deficits through the purchase of federal debt, thus enabling the funding of higher mortgages on consumer's homes. So, the consumption binge continues. It is, however, moderating as the dollar declines in value and home values decrease.

Number Seven: No Retirement Funds

A recentWall Street Journalarticle reported that most baby boomers under 65 have less than $150,000 saved for retirement; those under 50 have saved less than $50,000.[16]Such low savings are clearly not sufficient for a comfortable retirement and may force retirees back into a lifetime of work.

Many times, the funds that are invested in the stock market are invested more as a gamble in an effort to "catch up." Apparently, the relationship between savings and the time value of money is unclear to most employees. From early debt repayment to life cycle decisions, the burden is on individuals to fend for themselves. A long-term plan with adequate contributions is needed in order to prepare for retirement, particularly in light of the Social Security dilemma.One of the reasons that personal savings are so low is that individuals have gone on a consumption binge, even in the face of stagnate incomes. Normally, market forces would correct this binge in part by increasing the costs of consumable goods. But recent times have been different. There are groups out there (especially one-China) willing to trade consumable goods for America's seed stocks by financing federal budget deficits through the purchase of federal debt, thus enabling the funding of higher mortgages on consumer's homes. So, the consumption binge continues. It is, however, moderating as the dollar declines in value and home values decrease.

Number Seven: No Retirement Funds

A recentWall Street Journalarticle reported that most baby boomers under 65 have less than $150,000 saved for retirement; those under 50 have saved less than $50,000.[16]Such low savings are clearly not sufficient for a comfortable retirement and may force retirees back into a lifetime of work.

Many times, the funds that are invested in the stock market are invested more as a gamble in an effort to "catch up." Apparently, the relationship between savings and the time value of money is unclear to most employees. From early debt repayment to life cycle decisions, the burden is on individuals to fend for themselves. A long-term plan with adequate contributions is needed in order to prepare for retirement, particularly in light of the Social Security dilemma.

1......................It is the study of economic actions of individuals and small groups of individuals:

2.The principal reasons behind economic problems :

3.Invisible hand theory is give by :

4.The ultimate effect of the "invisible hand" of Adam Smith is that, in a competitive economy, everyone:

5.The three fundamental questions of economic organization are:

6.Economics is the science, which studies human behaviours as a relationship between ends and scarce means which have alternative uses. This definition of Economics is given by,

7.Which of the following is true regarding the circular flow model?

8.Income and revenues that are created within a country

9.In a circular flow model, the real variables are:

10.Money is