Society's rate of time preference is
A) the extra amount people would be willing to pay to have consumption goods in the future instead of now.
B) the value that people place on the time saved by purchasing capital goods rather than consumer goods.
C) the extra amount people would be willing to pay to have consumption goods now instead of the future.
D) is negative if people prefer present consumption to future consumption.
C
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If a price floor is set below the current market clearing price, then
A) a surplus must immediately occur. B) a shortage must immediately occur. C) there will be incentives for black markets to develop. D) quantity demanded will remain equal to quantity supplied at the current market clearing price.
Which of the following statements are true regarding profit maximizing firms? a. They will attempt to maximize the difference between total revenues and total costs. b. They will use more of a resource as long as the MRC is greater than the MRP
c. They will only produce where MRP is positive and MRC is negative. d. none of the above.