Which of the following is a response to People's inconsistent behavior over time ?
Correct answer: B. forced contributions to a retirement plan
- A. all of these answers
- B. forced contributions to a retirement plan
- C. year-end bonuses
- D. efficiency wages
Explanation
Forced retirement contributions help people overcome present bias by committing part of their current income to future needs. Year-end bonuses and efficiency wages do not directly address inconsistent preferences over time.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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