This question <563-13|589-3> overall <563-15|563-17> TedBell: <550|563-18>. graded B–  
  Question 402: Explain the economic necessity of hoarding, and the individual motivation for hoarding.   
  [563-16] TedBell: Hoarding may be an economic necessity due to the simple fact that some commodities may not be on the market all of the time there may be times when a commodity is seasonal. Hoarding is the item which allows the trade of these seasonal commodities. Another aspect of hoarding deals with the accumulation of capital, when a person is able to sell without buying they will accumulate. The individual necessity deals with the fact that the person has motivation to save for his or her own gain like retirement or social status. Without a stockpile of money in society people could not borrow funds in order to purchase goods, which may be well above their yearly incomes. Hoarding is the way in which commodities or capital activity is controlled and accumulated.   
  Hans: On part of your answer you are talking about stockpiling goods, on the other about saving money.   
 
 
 
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