In a one-period economy
A) consumption equals disposable income.
B) consumption equals disposable income plus the value of non-market work.
C) savings is always positive.
D) consumers may increase their consumption by borrowing.
E) consumers save more than they consume.

Question

Quizplus · Accepted Answer

In a one-period economy, there is no opportunity for borrowing or saving, so disposable income is equal to consumption. Non-market work is not included in this calculation. Therefore, option A is correct.

In a One-Period Economy