Alicias philosophy of life is summed up by the proverb A penny saved is a penny earned.

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Alicia’s philosophy of life is summed up by the proverb “A penny saved is a penny earned.” She plans and saves for the future. In contrast, Mike’s view is “Life is uncertain; eat dessert first.” Mike wants as much as possible now.

a. Who has the highest rate of time preference?

b. Do people like Alicia benefit from the presence of people like Mike?

c. Do people like Mike benefit from the presence of people like Alicia? Explain.

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Economics Private And Public Choice

ISBN: 9780357133996

17th Edition

Authors: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Question Posted: Oct 17, 2023 10:00 AM

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Alicias philosophy of life is summed up by the proverb A penny saved is a penny earned.

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a Mike has the highest rate of time preference Time preference refers to the degree to which individ...View the full answer

Economics Private And Public Choice

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