Which of the following does not reflect a positive rate of time preference?
A) Concert-goers yell and scream when the stage is still dark an hour after the concert was scheduled to start.
B) Borrowers have to pay interest on loans.
C) A dieter, allowed three ounces of butter per day, spends the whole allotment on her toast at breakfast.
D) A dieter, allowed three ounces of butter per day, promises himself some new clothes if he can break the habit of spending the whole allotment on his toast at breakfast.
E) A student stays up late every night for a week to finish her term paper two months before it is due.
Correct Answer:
Verified
Q29: The difference between income and consumption is
A)rent
B)profit
C)saving
D)opportunity
Q30: If we assume that a unit of
Q31: Which of the following does not reflect
Q32: The reward for forgoing present consumption is
A)rent
B)profit
C)roundabout
Q33: If Arnold has a positive rate of
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
Q37: If the annual interest rate is 5
Q38: A positive rate of time preference means
Q39: If the annual interest rate is 4
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