After watching the video clip from A Knight’s Tale, consider the effect of choosing consumption today versus consumption in the future. Using the PPC as a springboard for your analysis, what effect would forgoing consumption today in order to invest for tomorrow have on future production possibilities? Now consider the choices our government faces when it has limited tax revenues to fund the unlimited wants of its citizens. Describe some of the choices the government makes between consumption today and investment for tomorrow.
After watching the clip A Knight’s Tale, it showed how saving can be important and allow us to get more later on. When you have a plan in advance for what is going to happen in the long run based on investments, you are more likely to follow through and have a better outcome. The effect of forgoing consumption today in order to invest for tomorrow could be great for future production possibilities. Saving now can allow for so much more to be done in many aspects. If we took the time to save today for the future, there is a possibility that the prices for certain things may drop in the future. We also may have a shot at getting something better for a cheaper price. As for the government, if they decided to spend now instead of saving for tomorrow, the fast spending could slow down the growth of the economy.
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ECON 201 dISCUSSION 1 The Effect of choosing consumption today versus consumption in the future.docx