Which of the Following Impacts the Value of an Item

question 28

Multiple Choice

Which of the following impacts the value of an item to its owner?

• A)When the owner expects to receive something in exchange for the item
• B)How certain the owner is about what and when they will receive something in exchange for the item
• C)What the owner expects to receive in exchange for the item
• D)All of the above

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Definitions:

Diminishing Returns

A principle stating that as additional units of a variable input are added to a fixed input, the marginal product of the variable input eventually decreases.

Upward-Sloping

Describes a line or curve on a graph that moves higher on the y-axis as it moves to the right on the x-axis, typically used to describe a supply curve in economics.

Short-Run Average Total Cost Curve

A graphical representation that shows how the average total cost of production changes as the quantity produced changes in the short run.

Spreading Effect

The process by which increased investment leads to greater levels of income and consumption.