A Consumer May Increase Her Saving by

question 17

Multiple Choice

A consumer may increase her saving by

• A) working more hours and consuming more goods in the present period.
• B) working more hours and consuming fewer goods in the present period.
• C) working fewer hours and consuming more goods in the present period.
• D) working fewer hours and consuming fewer goods in the present period.

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Definitions:

Short Run

A period in economics where at least one input is fixed and cannot be changed.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full adjustment to changes.

Allocative Efficiency

A condition where resources are distributed according to consumer preferences, optimizing utility for both producers and consumers.

Production

The process of creating goods or services by combining various inputs like labor, materials, and technology.