Which of the following does not reflect a positive rate of time preference?
a. Concert-goers yell and scream when the stage is still dark an hour after the concert was scheduled to start.
b. Borrowers have to pay interest on loans.
c. A dieter, allowed three ounces of butter per day, spends the whole allotment on her toast at breakfast.
d. A dieter, allowed three ounces of butter per day, promises himself some new clothes if he can break the habit of spending the whole allotment on his toast at breakfast.
e. A student stays up late every night for a week to finish her term paper two months before it is due.
Question 2
The American Tire Company has been experiencing a steady loss of market over the past 40 years due to imports of lower-priced tires. Which argument would American Tire most likely present to Congress when it lobbies for trade restrictions?
a. infant industry argument
b. declining industry argument
c. national defense argument
d. antidumping argument
e. loss of domestic jobs
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