Impulse control problems can arise when people:
A. discount the future too little.
B. place too much weight on future costs and benefits.
C. place too little weight on current costs and benefits.
D. discount the future too heavily.
Answer: D
Economics
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A firm's objective behind charging different prices to different consumers for the same good is to:
A) enhance goodwill. B) enhance its profits. C) enhance social surplus. D) enhance its market power.
Economics
A borrower who takes out a loan usually has better information about the potential returns and risk of the investment projects he plans to undertake than does the lender. This inequality of information is called
A) moral hazard. B) asymmetric information. C) noncollateralized risk. D) adverse selection.
Economics