Chapter 3.1, Problem 2R

To determine

To state: Four items purchased now (Spending) and save money for four items to be purchased later (Saving).

Explanation of Solution

    

The above diagrams show the spending on four items and saving for later purchase of four items. Clothes, books, a burger, and medicines are purchased now and a computer, watch, phone, and a new bag will be purchased later from savings. People purchase necessary items and save for the items which are not that necessary for now.

Economics Concept Introduction

Introduction:

Spending is the current purchase of goods and services. Whereas, saving refers to the transfer of purchasing power from the current to a future date.