The Marginal Rate of Substitution of Future Leisure for Future

question 30

Multiple Choice

The marginal rate of substitution of future leisure for future consumption must be equal to

• A)the relative price of current consumption in terms of future consumption.
• B)the future real wage.
• C)one.
• D)savings in the current period.
• E)the real interest rate.

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Definitions:

Summit

The highest point of a hill or mountain; metaphorically, it can also refer to a meeting between heads of government or leaders.

Experiencers

Individuals who seek out new and varied experiences, often highly engaged in activities for sensory stimulation.

Lifestyle Dimensions

Aspects or components that characterize the way an individual or group lives, including activities, interests, opinions, and behaviors.

Club Memberships

Subscriptions or enrollments in organizations or services that offer exclusive benefits, rewards, or access to members.