The Term "Positive Rate of Time Preference" Suggests That

question 59

Multiple Choice

The term "positive rate of time preference" suggests that

• A)people prefer more time to do something than less time.
• B)people prefer goods to be available at an earlier time period than at a later time period.
• C)some people are irrational because they would rather have something now than wait to consume it later when they can enjoy it more.
• D)interest rates tend to increase over time.
• E)businesses know that if they invest in capital goods, they will earn profits.

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Definitions:

Service Department Expenses

Costs incurred by the departments that support the primary activities of a business but do not directly engage in production.

Operating Departments

Operating departments refer to the divisions within a company directly involved in its core business activities and operations.

Maintenance Expenses

Costs incurred to keep property, equipment, or assets in efficient operating condition, not improving but merely maintaining them.

Square Footage

A unit of area measurement equal to a square that is one foot on each side, commonly used to measure the size of an area such as real estate or interior spaces.