Jones Has a High Rate (Of Positive) Time Preference and Smith

question 100

Multiple Choice

Jones has a high rate (of positive) time preference and Smith has a low rate (of positive) time preference. Which man is more likely to take out a loan to buy a car now?

• A)Smith, because he prefers earlier availability of goods to later availability of goods.
• B)Jones, because he prefers earlier availability of goods to later availability of goods.
• C)Smith, because he prefers earlier availability of goods more than Smith prefers earlier availability of goods.
• D)Jones, because he prefers earlier availability of goods more than Smith prefers earlier availability of goods.
• E)There is not enough information to answer the question.

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Definitions:

Competitive Situations

Scenarios in which individuals or groups compete against each other to achieve a specific goal or outcome.

Neuroticism

A personality trait characterized by emotional instability, anxiety, moodiness, worry, and a tendency towards negative emotions.

Negative Affectivity

A characteristic of personality marked by a consistent tendency toward negative feelings and a low self-esteem.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not affect future decision-making but often do.