In the absence of commitment devices, present-biased individuals are never as patient as they intend to be.
Answer the following statement true (T) or false (F)
True
Rationale: Present bias means that, whatever patience level one thinks one will have in the future, it changes when the future becomes the present -- making us less patient than we thought we would be.
You might also like to view...
Social Security pension benefits are
A. subject to income taxes for those with certain income levels. B. non-taxable for all retirees. C. subject to state, but not federal, income taxes. D. subject to capital gains taxes.
Capitation
a. creates pressures to provide fewer services. b. is a fixed payment determined in advance to pay for all medically-necessary care. c. is the maximum allowable fee in a fee-for-service system. d. shifts financial risk onto patients. e. Both a and b are correct.
An example of a public good that the government has made excludable is:
A. national defense. B. city buses. C. sewer systems. D. police protection.
Which circumstance is most likely to cause a farmer to store soybeans for future sale instead of selling them right after harvest?
(A) Inflation is running at 25 percent. (B) The government lifts restrictions on the importation of soybeans. (C) A new technology decreases the chance of rot. (D) The government imposes an excise tax effective next year.