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

---

Definitions:

Earn Paycheck

The act of receiving payment for work performed or services provided.

Leptin

A hormone produced by fat cells that helps to regulate energy balance by inhibiting hunger.

Appetite Regulation

The biological and psychological mechanisms that control the desire to eat, influencing food intake and energy balance.

Intrinsic Motivation

The drive to engage in an activity for its own sake, due to the inherent satisfaction and interest it provides, rather than for some separable consequence.