Recall Application 4, "Trade, Consumption and Inequality," to Answer the Following

question 223

Multiple Choice

Recall Application 4, "Trade, Consumption and Inequality," to answer the following questions:
-According to the application, the goods that lower income individuals consume tend to be:

• A) non- tradeable goods.
• B) non- durable goods.
• C) durable goods.
• D) services.

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Definitions:

Lessor

The entity that rents out a property or asset to another entity, referred to as the lessee.

Sale and Leaseback

A financial transaction where one sells an asset and leases it back for the long-term; thus, continuing to use the asset but no longer owning it.

Lessee

The party in a lease agreement who pays the lessor for the use of an asset or property.