A Positive Rate of Time Preference Means That _____

question 182

Multiple Choice

A positive rate of time preference means that _____

• A)as time progresses, people value consumption more than saving.
• B)consumption in the future is more important than current consumption.
• C)current consumption is valued equally as consumption in the future.
• D)consumption in the future is valued less than current consumption.
• E)consumption in the future and consumption today are positively related.

---

Definitions:

Machine-Hours

A gauge for the level of production or activity, calculated through the duration machines are in use.

Manufacturing Overhead

Indirect costs related to manufacturing that are not directly tied to specific units produced, such as maintenance and utilities.

Machine-Hours

A unit of measure representing the operation of one machine for one hour, used in allocating manufacturing costs.

Predetermined Overhead Rate

It's a rate used to allocate manufacturing overhead based on a particular activity (like labor hours or machine hours).