Total Cost Includes

question 124

Multiple Choice

Total cost includes

• A) the cost of variable resources only.
• B) the cost of fixed resources only.
• C) the cost of both variable and fixed resources.
• D) the cost of neither variable nor fixed resources.
• E) all explicit costs and all the implicit costs that actually must be paid using money.

Understand negative reinforcement and its effect on behavior.

Identify and explain the schedules of reinforcement in operant conditioning.

Recognize the role of cognitive processes in conditioning.

Discern the various outcomes and processes involved in conditioning and learning theories.

---

Definitions:

Liquidity Preference

The desire to hold cash or easily convertible assets rather than investments that might be harder to convert into cash.

Interest Rate

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Loanable Funds

The money available for borrowing in the financial markets, corresponding to savings that are lent out for investment.

Liquidity Preference Theory

A theory suggesting that people prefer to hold their wealth in liquid form for ease of spending but are willing to accept less liquidity for a higher return.