Jan Is a Hyperbolic Discounter

question 1

Multiple Choice

Jan is a hyperbolic discounter. She puts weight 1 on utility earned in the current period but only weight .5 on utility earned in future periods. In period 1 she comes up with a plan,which involves taking some action that leads to a loss of C utils in period 2 but provides a benefit of B utils in period 3. What values of B and C will lead her to behave inconsistently and not follow through on her plans?

• A)C < B < 2C.
• B)B < C.
• C)B > 2C.
• D)B < C < 2B.

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Definitions:

Juxtaglomerular Apparatus

A structure in the kidney that regulates blood pressure by managing the release of renin.

Blood Pressure

The pressure of circulating blood against the walls of blood vessels, often measured for diagnosis since it is closely related to the force and rate of the heart's contractions and the diameter and elasticity of the arterial walls.

Loop of Henle

A section of the nephron in the kidney that functions in water and salt balance, crucial for urine concentration.

Osmotic Pressure

Measure of the tendency of water to move across a selectively permeable membrane; visible as an increase in liquid on the side of the membrane with higher solute concentration.