Which of the following does not reflect a positive rate of time preference?
A) People are willing to pay high prices to see new movies at first-run theaters.
B) A bank pays interest on savings accounts.
C) Ed puts money in his mattress for a rainy day.
D) Dry cleaners that provide faster service can charge more.
E) A college freshman parties all semester, then stays awake studying for 50 straight hours during final exam week.
Correct Answer:
Verified
Q26: If people have a positive rate of
Q27: The reward offered to households to refrain
Q28: The marginal rate of return on investment
Q29: The difference between income and consumption is
A)rent
B)profit
C)saving
D)opportunity
Q30: If we assume that a unit of
Q32: The reward for forgoing present consumption is
A)rent
B)profit
C)roundabout
Q33: If Arnold has a positive rate of
Q34: Which of the following does not reflect
Q35: The interest rate compensates
A)bankers for their time
Q36: Interest is a payment for deferred
A)taxation
B)saving
C)consumption
D)investment
E)none of
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