Goods and Activities Typically Are More Highly Valued the Sooner

question 33

Multiple Choice

Goods and activities typically are more highly valued the sooner they can be enjoyed, other things constant,

• A)only when interest rates are positive
• B)because interest rates are positive
• C)only when people save
• D)because people save
• E)because people have positive rates of time preference

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Definitions:

Total Cost

The complete cost of production including fixed and variable costs.

Average Total Cost

The total of all costs divided by the number of goods produced, representing the per unit production cost.

Output

The total amount of goods or services produced by an individual, company, or country.

Total Variable Cost

The sum of all costs that vary with output level in the production process.