John Is Willing to Give Up 2 Apples Tomorrow to Get

question 158

Multiple Choice

John is willing to give up 2 apples tomorrow to get one apple today, whereas Bill is willing to give up only 1.5 apples tomorrow to get one apple today. It follows that

• A)John has a higher rate of time preference than Bill, because he is willing to give up more tomorrow to get something today.
• B)Bill has a higher rate of time preference than John, because he is willing to give up less tomorrow to get something today.
• C)if we factor in the price of apples, John and Bill (probably) have the same rate of time preference.
• D)Bill has a lower rate of time preference than John, because he is willing to give up more tomorrow for something today.
• E)John has a lower rate of time preference than John, because he is willing to give up more tomorrow to get something today.

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Definitions:

Protective Tariffs

Taxes imposed on imported goods to protect domestic industries from foreign competition by increasing the price of imported goods.

Agricultural Inventions

Innovations and developments in the field of agriculture that improve efficiency, yield, or sustainability in food production.

Farmers

Individuals or entities engaged in the activity of agriculture, raising living organisms for food or raw materials.

Liberal Land Policy

A policy approach that aims to make land more accessible to the population, often by reducing restrictions and lowering costs.