Patience Has a Utility Function , Where C₁ Is

question 35

Multiple Choice

Patience has a utility function , where c₁ is her consumption in period 1 and c₂ is her consumption in period 2. Her income in period 1 is twice as large as her income in period 2. At what interest rate will she choose to consume the same amount in period 1 as in period 2?

• A) 0
• B) 0.25
• C) 0.13
• D) 0.50
• E) 0.38

---

Definitions:

Holocracy

A method of decentralized management and organizational governance, where decision-making is distributed through self-organizing teams rather than being concentrated at the top.

Multiteam System

A structured form of organization comprising multiple teams that interact to achieve common or compatible goals across different yet interconnected projects or tasks.

Collective Intelligence

The enhanced capacity and wisdom that emerge from collaboration, coordination, and competition among individuals.

C-Factor

A term representing "collective intelligence" of groups, indicating their ability to perform together effectively across a range of tasks.