In a model where we take into account the full cost of a good in terms of time, rich people:
A)tend to overconsume time- intensive goods.
B)tend to consume relatively fewer time- intensive goods.
C)tend to underconsume time- intensive goods.
D)tend to consume relatively more time- intensive goods.

Question

Quizplus · Accepted Answer

If we take into account the full cost of a good in terms of time, then the opportunity cost of time for a rich person is higher than for a poor person. Therefore, rich people will tend to consume more expensive, higher-quality goods that save time, such as private transportation or household appliances. They will consume relatively fewer time-intensive goods, such as public transportation, cooking from scratch, or DIY projects, as the opportunity cost of their time is relatively higher.

In a Model Where We Take into Account the Full