What Do We Refer to When We Talk About Becca's

question 4

Multiple Choice

What do we refer to when we talk about Becca's time preference?

• A)The amount of time that Becca spends on financial transactions
• B)The value of her time
• C)The rate at which Becca prefers to consume today as opposed to consuming in the future
• D)The rate of interest she is willing to pay for a loan

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Definitions:

Time Costs

The opportunity costs associated with the time spent on an activity instead of other, potentially more valuable, activities.

Transaction Costs

Expenses incurred in making an economic exchange, including search, bargaining, and enforcement of contracts.

Volume Of Trade

The total quantity of shares or contracts traded for a specified financial instrument or market within a specified period.

Gains From Trade

The increase in utility or welfare that countries or individuals obtain by engaging in voluntary exchange of goods and services.