Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 13, Problem 1P
A
To determine
The blank when the current consumption is more than the future consumption.
A
Expert Solution
Explanation of Solution
If Bryan values current consumption more than future consumption, he has a net − borrowing.
Economics Concept Introduction
Introduction:
An intertemporal choice means how the consumer chooses to consume a good in the various time periods.
Net- saver as the name suggests the consumer is saving a good in the current period in order to consume in future.
Net borrower which means the consumer chooses to consume a good in the current time period and borrow from the future with the cost of borrowing.
B
To determine
The blank with the name of the reward to household for forgoing current consumption.
B
Expert Solution
Explanation of Solution
The reward to households for foregoing current consumption is saving
Economics Concept Introduction
Introduction:
An intertemporal choice means how the consumer chooses to consume a good in the various time periods.
Net- saver as the name suggests the consumer is saving a good in the current period in order to consume in future.
Net borrower which means the consumer chooses to consume a good in the current time period and borrow from the future with the cost of borrowing.
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An animal herder produces 300 litres of milk each year. He sells 160 litres to his
neighbours and stocks 140 litres for his own consumption. Which figure should be
included in household consumption: 160 litres or 300 litres?
1. Inventory is:
Group of answer choices
a. the total amount of goods that a company produces now, regardless of whether they've sold it or not.
b. the stock of goods that a company produced last year, but had to sell for below cost.
c. the stock of goods that a company produces now, but keeps to sell at a future time.
d. the stock of goods that a company produces and sells in a given time perio
2. The four categories of expenditure (spending) in the economy are wages, rent, interest, and profit.
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True
False
Given Table 12-5 below, fill in the values for saving. Assume
there are no taxes.
Table 12-5
National
Income
$7,500
8,000
8,500
9,000
Consumption
$5,400
5,800
6,200
6,600
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Saving
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