Which of the Following Individuals Is Practicing Intertemporal Substitution

question 105

Multiple Choice

Which of the following individuals is practicing intertemporal substitution?

• A) Sharona decides to stop being a stay-at-home mother and enters the workforce to get extra money for future college expenses.
• B) Malika decides to stop being a stay-at-home mother and enters the workforce because the economy is booming.
• C) Anneliese studies continuously throughout the semester for her final exams.
• D) The United States enters a recession,and Tashika loses her job.

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.

Marginal Benefit

The additional benefit derived from producing one more unit of a good or service.

Accounting Profit

The total revenue of a business minus its explicit costs; essentially the net income reported on the financial statements.

Economic Profit

The difference between the total revenue received by a business and the total costs, including both explicit and implicit costs.