Comment on the following: "Present-biased people are impatient, but impatient people don't necessarily have to be present-biased."
What will be an ideal response?
Present-biased people are impatient in the sense that they discount the future more heavily when evaluating it relative to the present. But it's possible to be impatient without being present biased. Impatience simply means discounting the future a lot -- but present bias means discounting the future a lot only when evaluated relative to the present (and not when future periods are evaluated relative to one another). Present-bias therefore introduces a time-inconsistent kind of impatience -- the kind where one planed to be patient in the future but just not yet.
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The growth rate of real GDP per person equals the
A) population growth rate plus the growth rate of real GDP. B) change in the economic growth rate divided by the change in the population growth rate. C) the economic growth rate per person divided by the change in the population growth rate. D) growth rate of real GDP minus the growth rate of the population. E) population growth rate plus the growth rate of real GDP then divided by the initial level of real GDP.
A firm's marginal cost is $30, its average total cost is $50, and its output is 800 units. Its total cost of producing 801 units is
A) less than $40,000. B) between $40,000 and $40,050. C) between $40,050 and $40,080. D) greater than $40,080.