In Order to Encourage Domestic Saving, It Is Necessary to Have

question 105

Multiple Choice

In order to encourage domestic saving, it is necessary to have:

• A) a laissez faire economy.
• B) a balanced fiscal budget.
• C) a large number of government subsidies.
• D) a stable system of property rights.
• E) a highly developed banking system.

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Definitions:

Marginal Utility Curve

A graphical representation showing how marginal utility depends on the quantity of the good or service consumed.

Risk Aversion

The tendency of individuals to prefer outcomes that are certain or less risky over outcomes that are uncertain, even if the uncertain outcomes might offer a greater expected return.

Income

The money received, especially on a regular basis, for work or through investments.

Fair Insurance Policy

An insurance contract that is considered equitable, offering reasonable terms, coverage, and protection for all parties involved.