Microeconomics 13th Edition by Russell Sobel, David Macpherson, Richard Stroup, James Gwartney

Exercise 10

*Alicia's philosophy of life is summed up by the proverb "A penny saved is a penny earned." She plans and saves for the future. In contrast, Mike's view is "Life is uncertain; eat dessert first." Mike wants as much as possible now.
a. Who has the highest rate of time preference?
b. Do people like Alicia benefit from the presence of people like Mike?
c. Do people like Mike benefit from the presence of people like Alicia? Explain.