The concept of 'Inter-temporal Choice' in economics deals with:
A. Choice between present and future consumption
B. Choice between leisure and work only
C. Choice between imports and exports
D. Choice between different goods at the same time
Answer: Option A
Solution (By JKSSB Mock Tests)
Inter-temporal choice refers to decisions involving trade-offs among costs and benefits occurring at different points in time, such as saving versus present consumption.
Explanation:
Intergenerational equity concerns the fairness of distributing the burden of public debt and resource use between present and future generations, important for fiscal sustainability.
Explanation:
Macroprudential policy uses regulatory and supervisory tools to mitigate systemic risk and to increase the resilience of the financial system as a whole, complementing microprudential supervision of individual institutions.
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