Which of the Following Descriptions Best Defines the Intertemporal Budget

question 5

Multiple Choice

Which of the following descriptions best defines the intertemporal budget constraint?

• A) an amount equal to the person's total income
• B) the measure of the person's preference for consumption in one period relative to his or her preference in other periods
• C) the measure of the rate at which people can trade off consumption in one period for consumption in another period
• D) the opportunity cost of first-period consumption

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Definitions:

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.