Who among the following is the most likely to invest in human capital?
A) A person with a low rate of time preference
B) A person with a high rate of time preference
C) A person with no time preference
D) None of the above.
Question 2
Refer to the scenario above. Which of the following is likely to be true in this case?
A) A unique Nash equilibrium will occur.
B) A socially inefficient equilibrium will occur.
C) Multiple equilibria will occur.
D) A dominant strategy equilibrium will occur.