The household saving rate as measured by the Flow of Funds Accounts does NOT include
A) capital gains on stocks, bonds, houses, and other assets.
B) net investment in consumer durables.
C) household accumulations in government pensions.
D) All of the above.
A
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"I'd rather have $100 now than wait for $100 six months from now." This person
A) displays a negative rate of time preference. B) displays a positive rate of time preference. C) displays a zero rate of time preference. D) displays irrational behavior because the money will be more valuable later.
If an aluminum manufacturer does not bear the entire cost of the smoke it emits, it will
a. emit a lower level of smoke than is socially efficient. b. emit a higher level of smoke than is socially efficient. c. emit an acceptable level of smoke. d. not emit any smoke in an attempt to avoid paying the entire cost.