Jake Brings His Video Game Console Home Over Winter Break

question 59

Multiple Choice

Jake brings his video game console home over winter break and leaves it there, thinking he will study more during the spring semester without it around. Jake is:

• A)trying to compensate for the time-inconsistency of his desire to study more when faced with the temptation to play video games instead.
• B)forcing his behavior to match economic theory.
• C)not acting rationally, since what he really wants is to play video games.
• D)demonstrating that he has forgotten the fungibility of money.

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Definitions:

Assets Abroad

Refers to any form of wealth or resources owned by individuals or entities in foreign countries.

Selling

The act of offering goods or services in exchange for money or other goods and services.

Trade Surplus

A situation where the value of a country's exports exceeds the value of its imports over a certain period of time.

Net Capital Outflow

The difference between the domestic country's purchase of foreign assets and foreign purchases of the domestic country's assets over a certain period, often reflecting the flow of funds abroad.