The Parameter in the Consumer's Lifetime Utility Function Represents

question 56

Multiple Choice

The parameter in the consumer's lifetime utility function represents the ________ and is ________ if utility is worth more today than in the future.

• A) weight he or she puts on the future relative to today; less than one
• B) value of future consumption; equal to one or equal to zero
• C) expected present value of lifetime wealth; unknown today
• D) rate of return to savings; equal to long-term bond yields
• E) annual income growth; equal to the average GDP growth rate

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Definitions:

Example

A representative instance or case of a particular phenomenon, often used to illustrate a theory or explain an abstract concept.

Allport

Refers to Gordon Allport, an American psychologist known for his theory of personality traits.

Central Traits

Fundamental personality characteristics that are considered core to an individual's identity, according to Allport's theory.

Grace

A quality of acting with kindness, compassion, and care, often without expecting anything in return.