The Long-Run Budget Constraint Indicates That, in the Long Run

question 93

Multiple Choice

The long-run budget constraint indicates that, in the long run, a country's initial external wealth must be offset by (i.e., equal to) :

• A) the present value of its future trade balances.
• B) the future value of its future trade balances.
• C) the current value of its future trade balances.
• D) the present value of its future external wealth.

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Definitions:

Nonrival

A characteristic of a good or service where one person's consumption does not diminish the ability of another to consume it as well.

Excludable

A property of a good or service that allows its owner to prevent others from using it without permission.

Artificially Scarce Good

A good that has its availability limited by design or through artificial means, rather than through natural scarcity.

Cable Television

A system for delivering television programming to consumers via radio frequency signals transmitted through coaxial cables.