A Savings-Deficit Unit Is One

question 11

Multiple Choice

A savings-deficit unit is one:

• A)whose expenditure is equal to the income generated.
• B)whose expenditure exceeds its income for a particular period.
• C)that needs to borrow from a financial intermediary.
• D)whose expenditure is equal or greater than its income generated.

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Definitions:

WARP

The Weak Axiom of Revealed Preference (WARP) is a criterion used to check for consistency in consumer choice behavior under the assumption of rationality.

Bundle

A set of goods or services sold together as a single package.

Revealed Preferences

An economic theory that determines consumer preferences by observing their purchasing behavior rather than through direct inquiry.

Francs

A currency unit formerly used in France and some other countries, and still used in some territories.