Present bias implies that:
A) a consumer gives much more weight to the future than to the present.
B) a consumer gives much more weight to the present than to the future.
C) discount weights for delayed consumptions will always equal one.
D) discount weights for delayed consumptions will always be greater than one.
B
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The cross-price elasticity of demand for a good is the:
A) percentage change in the quantity demanded for a good due to a percentage change in the consumer's income. B) percentage change in the quantity demanded for a good due to a percentage change in the good's price. C) percentage change in the quantity demanded for a good due to a percentage change in tax rates. D) percentage change in the quantity demanded for a good due to a percentage change in the price of related goods.
The stockholder-manager conflict in a large publicly held firm is manifested in all of the following ways except
A) the managers implement very low-risk strategies that have very low returns. B) the managers implement strategies that maximize the value of the firm. C) managers pursue strategies that maximize firm size rather than the value of the firm. D) the managers attempt to maximize their salaries.