This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Why do trade-offs occur? How are budget constraints related to trade-offs? What will be an ideal ... (Read 129 times)

elizabeth18

  • Hero Member
  • *****
  • Posts: 559
on: Jun 29, 2018
Why do trade-offs occur? How are budget constraints related to trade-offs?
 
  What will be an ideal response?

Question 2

Which of the following represents the correct formula for present value?
 
  A) Present value = Payment T periods from now  (1 + interest rate)T
  B) Present value = Payment T periods from now - (1 + interest rate)T
  C) Present value = Payment T periods from now + (1 + interest rate)T
  D) Present value = Payment T periods from now / (1 + interest rate)T


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

at

  • Sr. Member
  • ****
  • Posts: 359
Reply #1 on: Jun 29, 2018
Answer to Question 1

Trade-offs occur because of scarcity: economic agents need to satisfy their wants with limited resources. Therefore, in most cases, some benefits have to be given up in order to gain some other benefits. Budget constraints quantify the relevant trade-offs that an economic agent faces. Once trade-offs are quantified, rational decision making becomes easier allowing the individual to make an optimal decision.

Answer to Question 2

D


elizabeth18

  • Member
  • Posts: 559
Reply 2 on: Jun 29, 2018
Gracias!

TheDev123

  • Member
  • Posts: 332
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Cucumber slices relieve headaches by tightening blood vessels, reducing blood flow to the area, and relieving pressure.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Did you know?

Tobacco depletes the body of vitamins A, C, and E, which can result in any of the following: dry hair, dry skin, dry eyes, poor growth, night blindness, abscesses, insomnia, fatigue, reproductive system problems, sinusitis, pneumonia, frequent respiratory problems, skin disorders, weight loss, rickets, osteomalacia, nervousness, muscle spasms, leg cramps, extremity numbness, bone malformations, decayed teeth, difficulty in walking, irritability, restlessness, profuse sweating, increased uric acid (gout), joint damage, damaged red blood cells, destruction of nerves, infertility, miscarriage, and many types of cancer.

Did you know?

The Babylonians wrote numbers in a system that used 60 as the base value rather than the number 10. They did not have a symbol for "zero."

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

Where Earthquakes Occur— Convergent Boundaries Where Earthquakes Occur— Convergent Boundaries
The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
The Number of Children Americans Think Are Ideal The Number of Children Americans Think Are Ideal
Dental Related Adverse Effects in Patients Undergoing Cancer Treatment Dental Related Adverse Effects in Patients Undergoing Cancer Treatment
Transatlantic Slave Trade Transatlantic Slave Trade
Humans are related to Earth’s other organisms Humans are related to Earth’s other organisms
Video: Cellular defenses (natural killer cells, phagocyte types & process of phagocytosis)

For a complete list of videos, visit our video library