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tresset_1 [31]
3 years ago
5

Stan complains to his roommate that he never has enough time to finish all the homework he's assigned, and his roommate tells hi

m to quiet down because the first of the three movies they've planned to watch that day has begun. Stan's behavior demonstrates which economic concept?
Social Studies
1 answer:
Andreas93 [3]3 years ago
3 0

Answer:

Stan's behavior demonstrates time inconsistency.

Explanation:

In Economics, time inconsistency is the change that occurs in a person's preferences over time. That change leads the person to reach a different evaluation when it comes to the costs and the benefits of a decision. In Stan's case, he seems to be prioritizing his time. He even complains that he never has enough time to finish all his homework. We can assume, from his complaint, that he wishes he had the time. Yet, at this very moment, he has chosen to watch three movies instead of doing his assignments. His current decision is inconsistent with what seems to be his preference. Clearly, he believes the benefits of watching the movies to be higher than the costs of not doing his homework. At this moment, therefore, there is an inconsistency between his preferences.

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