If you want to change selection, open original toplevel document below and click on "Move attachment"
Parent (intermediate) annotation
Open it households typically choose to spend less on consumption than they earn from their labor. This behavior is called saving , through which households can accumulate financial capital, the returns on which can produce other sources of household income, such as interest, dividends, and capital gains. Househol
Original toplevel document
2. TYPES OF MARKETS they judge that the value of the productivity of workers is greater than the cost of employing them. A major source of household income and a major cost to firms is compensation paid in exchange for labor services.
Additionally, <span>households typically choose to spend less on consumption than they earn from their labor. This behavior is called saving , through which households can accumulate financial capital, the returns on which can produce other sources of household income, such as interest, dividends, and capital gains. Households may choose to lend their accumulated savings (in exchange for interest) or invest it in ownership claims in firms (in hopes of receiving dividends and capital gains). Households make these savings choices when their anticipated future returns are judged to be more valuable today than the present consumption that households must sacrifice when they save.
Indeed, a major purpose of financial institutions and markets is to enable the transfer of these savings into capital investments. Firms use capital markets (markets for
Summary
status
not learned
measured difficulty
37% [default]
last interval [days]
repetition number in this series
0
memorised on
scheduled repetition
scheduled repetition interval
last repetition or drill
Details
No repetitions
Discussion
Do you want to join discussion? Click here to log in or create user.