Households dissave when en their consumption exceeds their incomes. The extra money comes from two sources: credit and past incomes, also known as savings. When a house dissaves it can either borrow money from financial institutions or spend money that was previously saved. Everyone cannot dissave at the same time because banks would not have enough money to fund everybody's excessive consumption.
Answer:
Distributive equity means to have the "advantages and weights" of society to be appropriated fairly between everybody, notwithstanding their age, sexual orientation, social class, geographic area, race, or nationality. For this situation, we could add inabilities as a component to likewise consider while conveying training. In this manner, we ought to have a specific sort of help for the individuals who battle turning in schoolwork, and the individuals who need to manage an incapacity and might require an alternate sort of help.
Explanation: 100% on edge, no clue what the person above is talking about.
Answer:
Alliie's situation best illustrates scarcity.
Explanation:
Scarcity refers to the situation when there are unlimited wants and limited resources. In the given scenario, Allie wanted to buy running shoes which cost her $90. However, her debit card was declined because she did not have enough resources (money) to pay for the shoes. Scarcity is a rather common concept which is applied all over the world because people have unlimited wants and limited resources to cover their demands.
Answer:
d. in the case of trivial or zero transaction costs, the property rights assignment does not matter to the resource-allocative outcome.
Explanation:
The Coase Theorem states a solution to Externalities problem. The theorem states that if externality effects are trade-able at low transaction costs, bargaining will establish optimal output, irrespective of which party has property rights.
Eg : Wind Turbines generate noise negative externality. However, noise spectrum has no property rights definition. The spectrum considered anybody's property right (turbine owners or public). It would lead to establishment of optimal output
- Continued turbine operation : if benefit value > noise harm by it
- Inefficient turbine operation (discouraged) : if benefit value < noise harm by it
The optimality decision would stay same, based on above norms. It would be irrespective of noise spectrum property rights ownership (by turbine owners or public), if transaction costs are low.
