The buyers and sellers who trade a particular good or service make up what we call a:

An economy with a government planning commission that provides explicit instructions for resource allocation is an example of

a. a command economy b. a communal economy c. a traditional economy d. a market economy e. market socialism

Jennifer lives in two periods. In the first period, her income is fixed at $72,000; in the second, she is gets a 4% raise in her income. She can borrow and save at the market interest rate of 5 percent.

(A) Sketch her intertemporal budget constraint. (B) Suppose that Jennifer is unable to lend at any rate of interest, although she can still borrow at 5 percent. Sketch her new intertemporal budget constraint.