Multiple Choice
A naif cannot solve the inter-temporal problem recursively because
A) A naif does not realize there will be future time periods.
B) A naif is unable to predict how their future plans are connected to their current plans.
C) A naif does not know his risk preferences in the future.
D) A naïf does not know his loss aversion in the future.
Correct Answer:
Verified
Correct Answer:
Verified
Q5: Erin has time consistent preferences must decide
Q6: Consider the example given on pages
Q7: Scenarios in which costs are experienced later
Q8: Consider the example given on pages
Q9: Consider the example given on pages
Q11: Naifs and sophisticates always violate either the
Q12: Fiona must decide when to go to
Q13: Joy needs to clean the house
Q14: Consider the example given on pages
Q15: Joy needs to clean the house