If $100 today is worth $150 to you in the future, then you exhibit
A. a neutral time preference.
B. a negative time preference.
C. a positive time preference.
D. a negative marginal rate of substitution.
Answer: C
You might also like to view...
In a move to free the economy from unnecessary regulation, Congress passes legislation to remove sugar price supports. What would most likely happen to the number of producers of sugar?
A. It would decrease, because sugar prices would fall. B. It would decrease, because sugar prices would rise. C. It would increase, because sugar prices would fall. D. It would increase, because sugar prices would rise.
During the period of rapid industrialization in the U.S. after the Civil War,
(a) real farm incomes fell drastically. (b) real incomes in the agricultural sector increased at a faster pace than real incomes in manufacturing. (c) real incomes in the agricultural sector increased at relatively the same rate as real incomes in manufacturing. (d) real incomes in the agricultural sector increased but at a slower pace than real incomes in manufacturing.
Rational self-interest means
A. pursuing activities that maximize income. B. pursuing what makes you better off. C. always pursuing activities that are consistent with your faith. D. always increasing your wealth.
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true? The opportunity cost of a truck in Country B is:
A. 4 trucks. B. 1.5 cars C. 12 cars. D. 3 cars.