Question

One of the Ten Principles of Economics in Chapter 1 is that people face tradeoffs. The growth that arises from capital accumulation is not a free lunch. It requires that society a. conserve resources for future generations. b. sacrifice consumption goods and services now in order to enjoy more consumption in the future. c. recycle resources so that future generations can produce goods and services with the accumulated capital. d. None of the above is correct

Answer 1

Answer:

The answer is: B) sacrifice consumption goods and services now in order to enjoy more consumption in the future.

Explanation:

This is the basic concept of savings in economics. In order to accumulate capital, you must have savings.

Saving is the income that wasn´t spent. Sometimes savings is also referred to as deferred consumption. What you don´t buy (or consume) today, you will be able to buy tomorrow.

For example, you have $100 for lunch money for the week. If you spend all of it on Monday and Tuesday, you can not buy any more lunch the rest of the week. But if instead you only spent $80 during this week, then next week you will be able to buy more things.