With respect to events like global warming some economists suggest using falling discount rates because
A) exponential discounting virtually gives no weight to (large) costs incurred far into the future.
B) exponential discounting weights (large) costs incurred far into the future heavily.
C) events far in the future do not affect us.
D) we should not care about costs far in the future.
Question 2
Today John says: I will start working out tomorrow. Yet, as tomorrow arrives he doesn't. This is an example of
A) time inconsistent preferences.
B) time consistent preferences.
C) exponential discounting.
D) future-biased preferences.
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