When a Household Takes Extra (Unbudgeted) Money on a Trip

question 163

Multiple Choice

When a household takes extra (unbudgeted) money on a trip, economists would classify this money as held for a(n) :

• A) speculative demand.
• B) transactions demand.
• C) emergency motive.
• D) precautionary demand.
• E) inflationary motive.

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Definitions:

Economic Losses

Monetary losses incurred from business operations or other economic activities, often delineated from accounting losses.

Positive Profit

A financial gain that occurs when the revenues earned exceed the costs incurred.

Production Level

The quantity of goods or services that a firm or economy produces within a given time period.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and equipment leases.