A person who greatly prefers present consumption to future consumption has a(n) __________ rate of time preference.

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Question restatement: A person who greatly prefers present consumption to future consumption has a(n) __________ rate of time preference.

Option 1: weakly positive (close to zero). This would imply the individual is patient and willing to wait for future consumption with little discounting, which contradicts a strong present-bias.

Option 2: efficient. In economics, efficiency is a broad term relating to optimal resource use and does not specifically describe how much a person discounts future consumption. It does not capture the idea of preferring today over tomorrow.

Option 3: strongly positive. A strongly positive rate of time preference means a large positive discount rate on future consumption, i.e., the individual places much more value on present consumption than on future consumption. This aligns with the description of greatly preferring present over future.

Option 4: roundabout. The term roundabout usually refers to a method or path that is indirect or takes longer, and it does not describe the sign or magnitude of time preference with respect to choosing present versus future consumption.

Summary of evaluation: The core concept is the magnitude and sign of time preference: larger positive values imply stronger present bias, i.e., choosing today over tomorrow. Among the options, only strongly positive conveys a substantial present bias, while the others either imply patience (weakly positive), unrelated notions (efficient), or an ambiguous, nonstandard descriptor (roundabout).

Princip of Econ-Microeconomics Module 13 Homework Assignment

A person who greatly prefers present consumption to future consumption has a(n) __________ rate of time preference.

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