Bobby Faces Two Choices

question 24

Multiple Choice

Bobby faces two choices.The first is to receive $600 on the spot.The other choice is to receive $800 a year from now.The interest rate is 5% per year.What could a possible explanation for Bobby choosing to receive $600 on the spot?

• A) Bobby finds that the present value of the $800 a year from now is less than $600.
• B) Bobby may have time-inconsistent preferences.
• C) Although Bobby chooses $600 on the spot, he is actually indifferent between the two options.
• D) None of the above is correct.

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Definitions:

Sexual Identity

An individual’s understanding and personal sense of their own sexuality, including their sexual orientation, preferences, and behaviors.

Sexual Differentiation

The process by which the sexes develop distinct reproductive anatomy and function, usually determined genetically but also influenced by environmental factors.

Sexual Orientation

Relates to an individual's pattern of emotional, romantic, or sexual attraction to others.

Criminal Behaviors

Actions that violate laws and are punishable by the state, ranging from theft to more severe crimes like assault or murder.