The Three Broad Reasons for Saving, as Identified by Economists

question 99

Multiple Choice

The three broad reasons for saving, as identified by economists, relate to:

• A)consumption, investment, and exports.
• B)national, public, and private production.
• C)the life-cycle, precaution, and bequests.
• D)capital gains, capital losses, and deficits.

---

Definitions:

Efficient

The quality of achieving maximum productivity with minimum wasted effort or expense.

Cycle Inventory

Inventory that is held to manage the normal fluctuation of production or supply and demand, rotating through cycles of replenishment.

Safety Inventory

Extra stock kept in storage to guard against uncertainty in demand or supply, ensuring product availability.

Seasonal Inventory

Inventory that is purchased or produced in anticipation of season-based demand increases, such as holiday merchandise.