The value that society places on consumption that is sacrificed in the present is called
A) social marginal costs.
B) social marginal damages.
C) social rate of discount.
D) social returns.

Question

Quizplus · Accepted Answer

The value that society places on consumption that is sacrificed in the present is referred to as the social rate of discount. It is the rate at which future costs and benefits are discounted to their present value. This is often used in cost-benefit analysis to determine whether a project or policy is worthwhile. The social marginal costs and damages refer to the costs and damages incurred by society as a result of an activity or policy, while social returns refer to the benefits received by society. Therefore, neither A, B, nor D are appropriate answers for this question.

The Value That Society Places on Consumption That Is Sacrificed