B Com Exam > B Com Videos > Business Economics & Finance > Time Preference - Economics Concepts, Business Economics & Finance
Time Preference - Economics Concepts, Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
|
71 videos|80 docs|23 tests
|
FAQs on Time Preference - Economics Concepts, Business Economics & Finance Video Lecture - Business Economics & Finance - B Com
| 1. What is time preference in economics? |  |
Ans. Time preference in economics refers to the theory that individuals generally prefer to receive goods and services in the present rather than in the future. It is the concept of valuing immediate consumption over delayed consumption. This preference is influenced by factors such as interest rates, future uncertainty, and personal preferences.
| 2. How does time preference affect business economics? | |
Ans. Time preference plays a crucial role in business economics as it affects investment decisions, capital budgeting, and financing choices. Businesses need to consider the time value of money and assess whether the benefits of an investment or project outweigh the costs incurred in the present. Time preference also impacts pricing strategies, as businesses need to account for customers' willingness to pay for immediate consumption.
| 3. How does time preference relate to finance? | |
Ans. Time preference is closely related to finance, particularly in the context of discounting and interest rates. Finance considers the time value of money, which means that the value of money decreases over time. Time preference influences the discount rate used to calculate the present value of future cash flows and determines the cost of capital for businesses. It also affects financial decision-making, such as whether to invest in long-term projects or opt for immediate returns.
| 4. What factors influence an individual's time preference? | |
Ans. Several factors influence an individual's time preference, including their personal preferences, risk aversion, future uncertainty, and cultural and social factors. Additionally, interest rates and inflation play a significant role in shaping time preference. When interest rates are higher, individuals may be more inclined to delay consumption and save for the future, whereas lower interest rates may encourage immediate consumption.
| 5. How can businesses manage time preference effectively? | |
Ans. Businesses can manage time preference effectively by considering the time value of money in their financial planning and decision-making processes. This involves discounting future cash flows to their present value and comparing them to the costs incurred in the present. Additionally, businesses can offer incentives for customers to choose delayed consumption, such as discounts for prepayment or installment payment options. By understanding and catering to customer time preferences, businesses can optimize their pricing and marketing strategies.
Related Exams
About this Video
|
4.79/5 Rating |
|
Nov 16, 2024 Last updated |
Video Description: Time Preference - Economics Concepts, Business Economics & Finance for B Com 2024 is part of Business Economics & Finance preparation.
The notes and questions for Time Preference - Economics Concepts, Business Economics & Finance have been prepared according to the B Com exam syllabus.
Information about Time Preference - Economics Concepts, Business Economics & Finance covers all important topics for B Com 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Time Preference - Economics Concepts, Business Economics & Finance.
Introduction of Time Preference - Economics Concepts, Business Economics & Finance in English is available as part of our Business Economics & Finance for B Com & Time Preference - Economics Concepts, Business Economics & Finance in
Hindi for Business Economics & Finance course. Download more important topics related with notes, lectures and mock test series for
B Com Exam by signing up for free.
Description
Video Lecture & Questions for Time Preference - Economics Concepts, Business Economics & Finance Video Lecture | Business Economics & Finance - B Com - B Com full syllabus preparation | Free video for B Com exam to prepare for Business Economics & Finance.
Information about Time Preference - Economics Concepts, Business Economics & Finance
Here you can find the meaning of Time Preference - Economics Concepts, Business Economics & Finance defined & explained in the simplest way possible.
Besides explaining types of Time Preference - Economics Concepts, Business Economics & Finance theory, EduRev gives you an ample number of questions to practice Time Preference - Economics Concepts, Business Economics & Finance tests,
examples and also practice B Com tests.
|
71 videos|80 docs|23 tests
|
|
Explore Courses for B Com exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
Objective type Questions
,study material
,shortcuts and tricks
,Time Preference - Economics Concepts
,Semester Notes
,Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
,Sample Paper
,Previous Year Questions with Solutions
,practice quizzes
,Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
,Extra Questions
,video lectures
,mock tests for examination
,Time Preference - Economics Concepts
,MCQs
,Free
,Summary
,Exam
,past year papers
,Viva Questions
,Important questions
,Time Preference - Economics Concepts
,ppt
,Business Economics & Finance Video Lecture | Business Economics & Finance - B Com
;
Study Time Preference - Economics Concepts, Business Economics & Finance on the App
Students of B Com can study Time Preference - Economics Concepts, Business Economics & Finance alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Time Preference - Economics Concepts, Business Economics & Finance,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Time Preference - Economics Concepts, Business Economics & Finance is prepared as per the latest B Com syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup