The theoretical model of the intertemporal budget constraint suggests that the most important factor in support of individual savings is:
a. the preference of the individual.
b. a higher rate of return on savings.
c. an increase in income.
d. a decrease in the cost of living.
a. the preference of the individual.
The theoretical model of the intertemporal budget constraint suggests that when the rate of return rises, the quantity of saving may rise, fall, or remain the same, depending on the preferences of individuals.
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Consider the perfectly competitive firm in the above figure. What will the firm choose to do in the short-run and why?
A) shut down because the firm incurs an economic loss B) stay in business because the firm is making an economic profit C) stay in business because the firm's economic loss is less than fixed costs D) stay in business because it is making zero economic profit
If all of the money currently spent on redistribution in the United States were directly transferred to the poor _____
a. it could turn the hard-core poor into the marginal poor b. it would not turn the hard-core poor into the marginal poor c. it is unclear what the effect would be on the hard-core poor d. the income of the poor would be raised above the current national average
To finance a government deficit,
A. money is borrowed. B. the government runs a budget surplus. C. taxes are lowered. D. government expenditures are lowered.
Define price discrimination. What factors must be present in order for a firm to price discriminate? Why do firms price discriminate?
What will be an ideal response?