602.2 Lesson - timePreference

Screen: timePreference

Headline: Time Preference

Reward: 2

Text: Time preference is the idea that the amount of time you have to wait for something to happen can affect the decisions you make.

For example, if you value the present more than the future, you might be more likely to choose something that gives you immediate gratification.

On the other hand, if you value the future more, you might be willing to wait longer for something that has a bigger benefit in the long term.

There are many factors that can influence your time preference, such as your personal safety, tax rates, property rights, and the ability to store value reliably.

The "hardness" of money (how well it holds its value over time) is also important because it can encourage people to save, plan, and invest for the future. It's important to note that time preference is not a fixed thing - it can change based on the incentives in your environment.

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QUIZ

Question: What is time preference?

Answer: The amount of value you place on the present versus the future

Feedback: Congratulations! You got it right. Did you know that there are many factors that can influence your time preference, such as personal safety, tax rates, property rights, and the ability to store value reliably

Correct: true

Answer: A preference for doing things at a specific time of day

Feedback: Wrong! Time preference has to do with decision-making, not a specific time of day. Maybe try again and think about how the time horizon you're operating on can affect your choices

Correct: false

Answer: A preference for traveling through time

Feedback: Ha! Time travel is still just science fiction, sorry. Maybe try again and think about how the time horizon you're operating on can affect your choices.

Correct: false