Skip to main content
Question
Chapter 29, Problem 1QP
To determine

Explain the meaning that an individual has a positive rate of time preference.

Expert Solution & Answer

Explanation of Solution

Generally, majority of the people greatly prefers the present consumption to the future consumption. This means that the degree of time preference is high for some individuals. For example, majority of the consumers prefer to buy a car today than to purchase a car after 5 years. Therefore, the positive rate of time preference indicates the preference for earlier availability of goods and services over the later availability of goods and services.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Economics (MindTap Course List)
Economics (MindTap Course List)
13th Edition
ISBN: 9781337617383
Author: Roger A. Arnold
Publisher: Cengage Learning
Not helpful? See similar books
Economics (MindTap Course List)
Economics (MindTap Course List)
Interest, Rent, And Profit. 1QP
Similar questions
To this solution
marketing sidebar icon
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts.
Knowledge Booster
Recommended textbooks for you
  • Economics (MindTap Course List)
    Economics
    ISBN:9781337617383
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Microeconomics
    Economics
    ISBN:9781337617406
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Microeconomic Theory
    Economics
    ISBN:9781337517942
    Author:NICHOLSON
    Publisher:Cengage
  • Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Microeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506893
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
  • Economics (MindTap Course List)
    Economics
    ISBN:9781337617383
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Microeconomics
    Economics
    ISBN:9781337617406
    Author:Roger A. Arnold
    Publisher:Cengage Learning
    Microeconomic Theory
    Economics
    ISBN:9781337517942
    Author:NICHOLSON
    Publisher:Cengage
    Economics: Private and Public Choice (MindTap Cou...
    Economics
    ISBN:9781305506725
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning
    Microeconomics: Private and Public Choice (MindTa...
    Economics
    ISBN:9781305506893
    Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
    Publisher:Cengage Learning