Hi guys. I've just starting studying "Man, Economy and State" and I'd like to post my replies to the study guide questions. So why don't we all participate, add our own answers and correct each other? I see that for many of you, the questions are very basic indeed but for a beginner, they are just right for ensuring progress.
Good idea huh?
As a newcomer to economics, it's a rocky road to traverse. In my country (Spain) I find that I am alone with any sympathy towards free market, deregulation, gold standard etc. I would like to learn to argue well for the Austrian perspective. I hope that this forum could be a useful too with regard to that aim.
Suppose that a boy, on June 4, is offered the choice of seeing a fireworks show that day, or in exactly one month. If the boy chooses the show in the future, has he violated the law of time preference?
Suppose that a boy, on June 4, is offered the choice of seeing a fireworks show
that day, or in exactly one month. If the boy chooses the show in the future, has
he violated the law of time preference?
My answer:
He has. It is better to have something now than later. Although it's also true that there are many other factors. He values something else at the time and therefore puts off the fireworks show because he prefers to do another activity, in the belief that in one month, there will be another, less desirable alternative.
Ok
BrendanC
A quick question: Do you know what day the fourth of july is in the United States?
Oh yeah. 4th of July-
I think she was saying that on July 4th (Independence Day) there are fireworks, which might affecr your answer...
Sure. I wasnt paying attention. 4th of July of course.
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I don't think he has. Time Preference does dictate that people would prefer present good to future good, yes, but it must be remembered the definition of good. Rothbard points this out in footnote 15 on page 15 in Chapter one in the example of the ice in winter over ice in summer. The fact is that the actor, being the child in this case, may have thus valued each event as a different good when determining values of each particular day to himself. Unless they involved the same exact cost (value of next best option), satisfaction derived from the good, presentation, etc. the two days simply cannot be categorized as homogenous. It is with that that I would conclude the answer to be no as time preference would require the choice to be between two homogenous goods.