Question
Asked Dec 8, 2019
50 views
4. Chris plans to study for an exam rather than surf the Internet. He even
prints
out the slides. Yet he ends up watching a movie because he finds the immediate
costs of studying too high. His behavior can be explained by
(A) the multi-self model;
(B) standard discounted utility model;
(C) quasi-hyperbolic model with naivete;
(D) none of the above.
help_outline

Image Transcriptionclose

4. Chris plans to study for an exam rather than surf the Internet. He even prints out the slides. Yet he ends up watching a movie because he finds the immediate costs of studying too high. His behavior can be explained by (A) the multi-self model; (B) standard discounted utility model; (C) quasi-hyperbolic model with naivete; (D) none of the above.

fullscreen
check_circle

Expert Answer

Step 1

The situation explained here indicates that the individual has the strong motive to study rather than using his time to surf the internet and enjoy the time. This means that the individual is very much concerned about the future and thus, values the present time to study for the brighter future. This is the reason why the individual uses the time before exam to study and complete the revisions. He uses the slides and even printouts of the slides to foster the study process.

Step 2

But at the end of the period, it is observed that the individual reverses the decision to study with a decision to watch movie. This means that the individual losses the consistency at the ending stage of the period and identifies that the immediate cost of studying is higher. This means that at...

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Economics

Other

Related Economics Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: A business that price-discriminates will generally charge some customers more than marginal cost, an...

A: Price discrimination is defined as a selling strategy which would charge customers with the differen...

question_answer

Q: Every year, management and labor renegotiate a new employment contract by sending their proposals to...

A: Nash equilibrium:The Nash equilibrium indicates that every person involved in the game makes the goo...

question_answer

Q: Hello, I would like help on this assignment Thank  you, Keynes & Friedman Explain how Keynes t...

A: As per our Honor code, we can answer only first question.

question_answer

Q: Parts G and H

A: G) The market demand curve is:Q = 1500 – 50PMinimum AC = $10At minimum AC of firm, the price is set ...

question_answer

Q: Each country should specialize in producing that good for which it a. has a comparative advantage b....

A: To determine when a country should specialize in production of a good.

question_answer

Q: Hello, I would like help with this assignment. I sent the other day and the number one and two were ...

A: C.To combat the inflationary situation that generated due to the higher aggregate demand (Y>Y*) t...

question_answer

Q: The value of a successful project is $420,000; the probabilities of success are 1/2 with good superv...

A: Since it is given that:Value of a successful project, given that, there is good supervision, P(B∩G) ...

question_answer

Q: Name 10 countries with the highest policy rate and the impact of the policy rate on their economies

A: The countries having the highest policy rates as of 2019 are listed in the table

question_answer

Q: What is the difference between Movement along Demand Curve and Shift in Demand Curve?

A: The demand curve is the graph that illustrates the relationship between the price of the commodity a...