Forgoing Current Consumption So That Those Resources Can Be Used

question 113

Multiple Choice

Forgoing current consumption so that those resources can be used to produce new capital is called

• A) absolute advantage.
• B) comparative advantage.
• C) investment.
• D) scarcity.
• E) saving.

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Definitions:

Inferior Goods

Inferior goods are products whose demand decreases as consumer income rises, opposite to normal goods.

Demand

The amount of a product or service that buyers are prepared and capable of buying at different price levels over a specific time frame.

Income

Earnings acquired on a consistent basis through employment or investments.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price within a specific time period.