Consider Sara as she goes through life. Is she destined to stay in the same income quintile her whole life, not able to move up the economic ladder? Question 9 options: A) In her early twenties, she may live with two room mates in an apartment while going to school and working part time and be in the second quintile. B) In her mid-forties, she could be the successful owner of a small business and be in the 4th quintile. C) In her sixties, Sara sells her business for $400,000 and for one year is in the top quintile, before settling into modest retirement in the 3rd quintile. D) All of the above are possible, showing that people over the course of their lives are not stuck in one quintile.

A method to measure the average (mean) household income of residents and ranking them from poorest…

Answered: Consider Sara as she goes through life.…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter1: Introduction: What This Book Is About

Section: Chapter Questions

Problem 7MC

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Consider Sara as she goes through life. Is she destined to stay in the same income quintile her whole life, not able to move up the economic ladder?

Question 9 options:

A)	In her early twenties, she may live with two room mates in an apartment while going to school and working part time and be in the second quintile.

B)	In her mid-forties, she could be the successful owner of a small business and be in the 4th quintile.

C)	In her sixties, Sara sells her business for $400,000 and for one year is in the top quintile, before settling into modest retirement in the 3rd quintile.

D)	All of the above are possible, showing that people over the course of their lives are not stuck in one quintile.

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