Author Question: We consider the preferences of the consumer because A) we want to understand the consumer's ... (Read 115 times)

go.lag · **on:** Jun 30, 2018

We consider the preferences of the consumer because

A) we want to understand the consumer's reaction to changing circumstances.
B) we want to determine the best marketing strategy.
C) the government wants to make the best consumption and leisure choice.
D) the firm needs to determine what to produce.

Question 2

In a two-period model, government spending is financed through

A) taxes and transfer payments.
B) taxes and issuing debt.
C) taxes and redeeming debt.
D) taxes only.