Why does the trade-off between consumption goods and capital goods represent a trade-off between the present and the future?
What will be an ideal response?
This is because consumption goods are for current satisfaction but capital goods are goods that can be used for producing consumption goods in the future. Society that reduces the production of consumption goods in favor of capital goods will result in more consumption goods in the future.
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In 1982, the retirement age was raised in such a manner that it is 65 for everyone born before 1938
A. and 70 for everyone born in 1960 or after, with a gradual increase in between. B. and 67 for everyone born in 1960 or after, with a gradual increase in between. C. and 70 for everyone else. D. and 67 for everyone else.
Is there any risk involved in using fiat money? How can it be minimized?
What will be an ideal response?
If the number of wine producers decreases:
A. the demand for wine increases. B. the demand for wine decreases. C. the supply of wine increases. D. the supply of wine decreases.
The process by which resources are transformed into useful forms is
A. capitalization. B. production. C. consumption. D. allocation.