A person is dynamically consistent if:
A. his preferences over the alternatives available at some future date change as the date approaches.
B. his preferences over the alternatives available at some future date do not change as the date approaches.
C. he does not always want to follow through on his plans and intentions.
D. he has complete self-control with occasional lapses.
B. his preferences over the alternatives available at some future date do not change as the date approaches.
You might also like to view...
What are the consequences of outsourcing production on the welfare of countries?
What will be an ideal response?
The free-rider problem faced by private information-collection firms results in their
A) usually going out of business within a few years. B) collecting less than all the available information about the firms they investigate. C) being plagued by lawsuits. D) charging fees higher than can be justified by market conditions.
Risk premiums rise sharply in a financial crisis.
Answer the following statement true (T) or false (F)
Relative to a competitive market equilibrium, the profit maximizing quantity chosen by a monopolist will result in a deadweight loss because:
A. the monopolist will produce at a quantity lower than the competitive equilibrium. B. the monopolist will produce at a quantity higher than the competitive equilibrium. C. the monopolist will charge a price lower than the competitive equilibrium. D. the monopolist will keep producing at a quantity even though the MR < MC.