A Person Is Dynamically Consistent If

question 30

Multiple Choice

A person is dynamically consistent if:

• A) his preferences over the alternatives available at some future date change as the date approaches.
• B) his preferences over the alternatives available at some future date do not change as the date approaches.
• C) he is also statically consistent.
• D) None of these is correct.

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Definitions:

Mental Illness

A broad range of conditions that affect mood, thinking, and behavior, often requiring medical or therapeutic treatment.

Drug Abuse

The harmful or hazardous use of psychoactive substances, including alcohol and illicit drugs.

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol.

Gross Sales

The total amount of sales recorded before any deductions for returns, allowances, or discounts.