In order to encourage domestic saving, it is necessary to have: ...

[pane00]

In order to encourage domestic saving, it is necessary to have:
 a. a laissez faire economy.
  b. a balanced fiscal budget.
  c. a large number of government subsidies.
  d. a stable system of property rights.
  e. a highly developed banking system.

Question 2

The difference between the amount a consumer is willing to pay and the amount they actually must pay for a good is called the:
 a. price elasticity of demand.
 b. substitution effect.
 c. consumer surplus.
 d. income elasticity of demand.

[manuelcastillo]

Answer to Question 1

d

Answer to Question 2

c