If People Have a Positive Rate of Time Preference, They

question 166

Multiple Choice

If people have a positive rate of time preference, they

• A)must be rewarded for saving
• B)are willing to pay more for a good that saves them money if they hold on to it a long time
• C)prefer to consume in the future when things are cheaper
• D)prefer time deposits to savings accounts
• E)prefer leisure over labor

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Definitions:

Cohort Effects

Differences among people that stem from being born at different times or periods, leading to distinctive formative experiences.

Intelligence Tests

Standardized tools designed to measure a person's cognitive abilities and intellectual potential.

Testing Bias

A flaw in the design, administration, or interpretation of tests that results in systematically unfair outcomes or assessments for certain groups of people.

Fluid Intelligence

The capacity to solve novel problems, reason abstractly, and identify patterns, without relying on existing knowledge.