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Daniel [21]
3 years ago
9

Please explain your answer! Which of the following best represents time preference?

Mathematics
1 answer:
igomit [66]3 years ago
4 0

Answer:

B.  Alex smokes a pack of cigarettes per day even though he knows that he may face poor health down the road because of his smoking habit.

Step-by-step explanation:

Time preference means that the person would like to have temporary but instant satisfaction. In this case, B would be the best choice, for Alex wants to experience the "high" (I guess?) from smoking, even when he knew that there would be health consequences down the road.

In this case, it is not:

A, for Thomas is not going to receive his reward (a profit from the investment) until later on. The money he invest is still "there", but it is technically gone into investment.

C, because this is assuming that retirement is a long way off, and that this would be a long-term investment, rather than a short term.

D, this is a long-term investment, as Sarah "hopes" that she can earn it all back in the future. With what she learns, she, in the long run, wants to find a sustainable & high-paying job.

~

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