I Am Always Indifferent Between a Unit of Consumption Today

question 58

Multiple Choice

I am always indifferent between a unit of consumption today and tomorrow and the interest rate is 5%.

• A)My intertemporal indifference curve is horizontal.
• B)My intertemporal indifference curve is a straight line with slope 21.
• C)I will spend all of my current and future income on consumption today.
• D)I will spend 5% more on consumption today than on consumption tomorrow.
• E)I will spend 5% more on consumption tomorrow than on consumption today.

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Definitions:

Profit Margins

A financial metric that measures the percentage of revenue that exceeds the costs of producing goods or services.

Open System

An open system is a system that continuously interacts with its environment, exchanging information, matter, and energy.

Theory X

A management concept that assumes employees are naturally unmotivated and dislike work, needing constant supervision and control.

Resource Inputs

The materials, labor, information, and other assets used to produce goods or services in a system or process.