Which One of These Assists in Shifting an Individual's Consumption

question 74

Multiple Choice

Which one of these assists in shifting an individual's consumption forward in time?

• A) A bank line of credit
• B) A bank savings account
• C) A life insurance policy
• D) A retirement savings plan

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than another entity, leading to more efficient trade and production.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others.

Opportunity Costs

The cost of forgoing the next best alternative when choosing among multiple options, measuring the trade-off involved in any decision.

Opportunity Cost

The value of the best alternative forgone when a choice is made, representing the benefits one could have received by taking an alternative action.