Time preference is:
A) the purchase of new capital goods.
B) income that is not spent on consumption goods.
C) the desire to have goods and services sooner rather than later (all other things being equal).
D) a sophisticated IOU that documents who owes how much and when payment must be made.

Question

Quizplus · Accepted Answer

Time preference is the preference for receiving goods and services at present rather than in the future, assuming all other factors are equal. It is about the trade-off between present and future consumption. Thus, option C correctly represents the definition of time preference.

Time Preference Is