Which of the following is NOT an example of intertemporal substitution?
A) David decides to go to college after high school,since he has graduated in the middle of a big recession and jobs are hard to come by.
B) Luke is an accountant who works overtime during tax season.
C) Sandy works 10-hour days as a ski instructor during the winter months but takes a 3-week vacation during the summer.
D) Thomas studies economics 2 hours every night in order to get a good grade in the course.

Question

Quizplus · Accepted Answer

Intertemporal substitution involves making choices between consuming goods or services at different points in time. Options A, B, and C all involve choices made based on the timing of consumption. However, option D involves studying in the present in order to achieve a desired outcome in the future, rather than making a choice regarding when to consume a good or service. Therefore, option D is not an example of intertemporal substitution.

Which of the Following Is NOT an Example of Intertemporal