A Consumer Who Is Time-Consistent

question 84

Multiple Choice

A consumer who is time-consistent:

• A) is on time or a little early for most appointments.
• B) uses nominal and real variables when making economic decisions.
• C) will make the same decision in economic transactions, whether the transaction happens immediately or in the distant future.
• D) will always make different decisions, depending on whether an economic transaction occurs immediately or in the distant future.

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Definitions:

Demand for Labor

The total amount of labor that employers want to hire at various wage rates, during a certain period.

Supply and Demand

The fundamental economic model that explains how the market price of a product is determined by the quantity of the product that producers are willing to supply and the quantity that consumers are willing to purchase.

Labor Market

The marketplace where workers offer their services for wages and employers look for workers to hire.

Wages

Remuneration provided to workers for their work, often determined on a per hour, per day, or per piece completed basis.