A graduate student is likely to consume less than a factory worker because the
A) graduate student's permanent income is likely lower than the factory worker's permanent income.
B) graduate student bases consumption on current income while the factory worker does not.
C) factory worker bases consumption on permanent income while the graduate student does not.
D) none of the above

Question

Quizplus · Accepted Answer

The graduate student's permanent income is likely lower than the factory worker's permanent income, so the graduate student is likely to consume less.

A Graduate Student Is Likely to Consume Less Than a Factory