The endowment point is the consumption bundle in which
A)households maximize utility.
B)permanent income is maximized.
C)households are indifferent to interest rate changes.
D)current consumption is equal to future consumption.
E)savings are zero.

Question

Quizplus · Accepted Answer

The endowment point in economics refers to the initial allocation of goods or resources that an individual or household possesses before any trade occurs. At this point, savings are essentially zero because the individual or household has not yet engaged in any transactions to alter their initial bundle of goods or resources.

The Endowment Point Is the Consumption Bundle in Which