Definition1.earnings received from working, property rentals, entrepreneurship, or the ownership of financial assets.2.a tool used to facilitate transactions, store wealth, or to be used as a yardstick to compare values.3.what you ownlong dash—the total collection of assets that serve to store value. this includes not only money but also other assets such as bonds, common stock, art, land, furniture, cars, and houses.4.the difference between what is earned and what is spent. this adds to total wealth.5.what you owelong dash—the accumulation of spending over and above periodic earnings.

Susie buys two goods - rounds of golf and massages. suppose that the price of a round of golf is $20, and the price of a massage is $30. in a typical week susie will play two rounds of golf, getting 20 units of satisfaction from the second round. she normally buys three massages each week, with the third giving her 30 units of satisfaction. if she were to buy a fourth massage in a week, it would give her 20 units of satisfaction. if the price of massages is reduced to $15, which of the following outcomes might we expect to occur? a) susie would leave her consumption choices unchanged because of diminishing marginal utility in the consumption of massages. b) susie would buy more massages and more rounds of golf, as predicted by the substituion effect. c) susie would buy more massages and fewer rounds of golf, as predicted by the substitution effect. d) susie would buy more massage and fewer rounds of golf, as predicted by income effect.