Today John says, "I will start working out tomorrow." Yet as tomorrow arrives, he doesn't. This is an example of
A) time inconsistent preferences.
B) time consistent preferences.
C) exponential discounting.
D) future-biased preferences.
A
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What are open market operations? If the economy is experiencing a recession, what kind of open market operations should the Fed undertake?
What will be an ideal response?
The principle of opportunity cost is that
A) the economic cost of using a factor of production is the alternative use of that factor that is given up. B) taking advantage of investment opportunities involves costs. C) the cost of production varies depending on the opportunity for technological application. D) in a market economy, taking advantage of profitable opportunities involves some money cost.
When the economy experiences a permanent supply side shock that shifts the long-run aggregate supply to the right, the short run aggregate supply curve will:
A. instantly shift left with the long-run aggregate supply to the new long-run equilibrium. B. begin by shifting left initially, and then be pulled right by the long-run aggregate supply over time. C. gradually shift right until it reaches long-run aggregate supply and the new long-run equilibrium. D. None of these is true.
The market structure that lies between competition and monopoly.
A. increasing returns to scale. B. intra-industry trade. C. inter-industry trade. D. imperfect competition.