The idea of time inconsistency:
A. explains how it can be rational for someone to say he's going to eat a salad for dinner each night this week and end up eating pizza four out of five nights instead.
B. explains how it can be rational for someone to pay more for something on his credit card than if he were to pay cash for the same thing.
C. explains why people refuse to ignore only some sunk costs.
D. Time inconsistency doesn't explain any of these behaviors.
A. explains how it can be rational for someone to say he's going to eat a salad for dinner each night this week and end up eating pizza four out of five nights instead.
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To the options buyer, the premium paid for the contract represents the
A) maximum return. B) largest potential loss. C) yield. D) transaction cost.
In the above figure, along which range would total revenue rise by lowering prices?
A) between point a and point b B) between point c and point d C) between point d and point e D) below point e
Economists think of products as being in the same market if they
A. are traded in the same geographic location. B. cannot be substituted for other goods and services. C. are highly interchangeable. D. produced by companies that complete with each other.
In the basic 45° line model, what is the effect of a decrease in the price level?
A. The expenditure line will shift downward. B. The expenditure line will shift upward. C. There will be movement to the left on the expenditure line. D. There will be movement to the right on the expenditure line.