Why Don't Consumers Work in the Two-Period Model

question 17

Multiple Choice

Why don't consumers work in the two-period model?

• A) It's a convenient simplification.
• B) It would make no difference to the model if consumers could work.
• C) People who participate in real-world credit markets do not work.
• D) We don't know how to include workers in the model.

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Definitions:

Golgi Apparatus

Named for Camillo Golgi, Italian histologist and Nobel laureate (1843–1926). Specialized endoplasmic reticulum that concentrates and packages materials for secretion from the cell.

Cilia

Microscopic hair-like structures on the surface of cells that move in a wave-like manner to transport substances.

Glands

Organs in the body that secrete hormones or other substances directly into the blood (endocrine) or into cavities inside the body or its outer surface (exocrine).

Epithelial

Relating to the thin tissue forming the outer layer of a body's surface and lining the alimentary canal and other hollow structures.