A Consumer's Budget Constraint in the Future Period Is

question 40

Multiple Choice

A consumer's budget constraint in the future period is

• A) c' = y'- t' + (1 + r)s.
• B) c' + (1 + r)s = y'- t'.
• C) c + s = y - t.
• D) c' = y' - t' - (1 + r)s.
• E) y' - t' = (1 + r)s.

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Definitions:

Marginal Social Benefit

The added value to the general population from the manufacture or use of one more unit of a good or service.

Marginal Social Benefit

The benefit gained by society from the production of one more unit of a good or service.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including both private costs and any externalities.

Marginal Social Benefit

The extra advantage to the community that comes from the consumption or production of an additional unit of a product or service.