The Two Types of Trade, Intertemporal and Pure Asset Swap

question 86

Multiple Choice

The two types of trade, intertemporal and pure asset swap ________ perfect substitutes, because ________.

• A) are; they both offer considerable payoff and are equal in the long run
• B) are; they both involve the smoothing out of now and future consumption
• C) are not; asset swapping is immediate and involves only assets, while intertemporal trade takes two time periods and involves both assets and goods/services
• D) could possibly be; different economic states occur at different points in time
• E) are not; asset swapping never relates to intertemporal trade

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Definitions:

Autocratic Control

Refers to a management style where decision-making powers are centralized in the hands of one individual, with little to no input from subordinates.

Organizations

Structured groups of individuals working together to achieve shared goals through a systematic arrangement of resources, information, and activities.

Performance Threat

A situation in which something is obviously wrong or has the potential to go wrong.

Performance Deficiency

A situation where an individual's work performance falls below the required standard or expectation.